project profile of fruits & vegetables content page no

1

Project profile of fruits & vegetables

Content Page No.

1. Dehydration of fruits & vegetables 1

2. Fruit juice 11

3. Instant dried pickles 21

4. Jam / jelly/marmalade 30

5. Squash ( natural & synthetic) 40

6. Tomato products 50

7. Tamarind powder & concentrate 60

8. Potato processing 68

9. Papaya candy 77

10. Watermelon juice 86

11. Desiccated Coconut 96

12. Banana powder 105

13. Fruit wine 115

14. Pineapple processing 125

15. Osmodried fruits 134

*****************

2

PROJECT PROFILE

DEHYDRATION OF FRUITS & VEGETABLES

1. INTRODUCTION

Fruits & Vegetables are available during specific seasons and they are perishable.

Hence, majority of them are not available during off season. To overcome this problem,

dehydration technique has been developed by which fruits & vegetables in dehydrated

form are preserved for a longer period and are made available during off-season. With

this technology, certain high value and popular fruits & vegetables can be profitably

sold in the market.

2. OBJECTIVES

The objective of the profiles is to encourage and assist prospective entrepreneurs in

MSME sector in and guiding making them aware of the opportunities of this sector. It is

also being developed by the Directorate of the Food Processing Industries, Government

of West Bengal to help entrepreneurs with knowledge about raw materials availability,

knowledge of market, source of technology and plant and machinery suppliers. M/s

ITV Agro & Food Technologies Pvt. Ltd., New Delhi has helped in developing the

project profile.

3. RAW MATERIAL AVAILABILITY

The all-important raw material will obviously be fresh fruits & vegetables. Hence, the

location of the project has to be nearer to fruits & vegetable growing areas. Depending

upon the availability of vegetables during different seasons, the product mix may

change. Likewise the prices of raw material would also change depending upon the

exact product mix and crop pattern. Prices of vegetables vary and the product mix may

also change according to quantum of crop and consumer preference . Hence, it is not

feasible to arrive at variety-wise fruit & vegetable required every month and their

3

individual prices. Therefore, average price of each vegetable is taken at Rs. 10000/- per

ton. The packing materials will be plastic bags made from suitable grades plastic,

corrugated boxes, box strapping, labels etc. Total production of fruits in the country is

estimated to be 805.57 lacs ton /year whereas total production of fruits in West Bengal

is estimated to be 31.36 lacs ton /year.

4. MARKET OPPORTUNITIES

a) Demand and Supply

Food habits of Indians are such that most of the households prepares vegetable every

day. Due to climatic condition and types of soil, many fruits & vegetable are cultivated

throughout the year. The major limitation of bulk of the green fruits & vegetable is that

they are grown only during pre-determined season which lasts for 3-4 months and thus

their availability during rest of the months is a major problem. Hence, if they are made

available during this period then they command premium. Green house method

enables cultivation of any vegetable during any season but call for huge investment

which affects the economic viability. Dehydration technique is therefore, preferred.

Total export of dehydrated fruits & vegetable from India during the year 2010-11, 2011-

12 and 2012-13 is estimated at Rs.51563.00 lacs, Rs. 70232.00 lacs and Rs. 86390.00 lacs

respectively.

b) Marketing Strategy

With growing income, changing lifestyles and hectic daily schedule, market for

dehydrated vegetables is growing especially in urban areas. Proper placement of

products in the departmental stores, super markets, shopping mall etc. backed up by

publicity is the key to success . It is also possible to have tie-up with exclusive

restaurants, star hotels, renowned caterers etc. for regular supplies.

4

5. PROJECT DESCRIPTION

a) Product & Its uses

Dehydration technology is well established and proven. Certain products like green

peas, cauliflower, carrots, spinach etc. command good price during lean and off-season.

Onion and garlic powder also has good demand round the year but these products are

generally available throughout the year and powder is somehow not favoured by the

Indians.. This project can be set up in many parts of the country but this note

considers West Bengal as the preferred location.

b) Capacity

The proposed capacity of the plant is to process 600 MT / annum of fruits & vegetables.

c) Manufacturing process

This note primarily consider dehydration of cabbage, cauliflower, spinach and carrots.

Other suitable vegetables can also be thought of. In case of cauliflowers, they are

chopped to make small pieces and washed. Then they are blanched and dried in air.

Spinach leaves are separated from the stalk, washed and dried in the drier. As regards

carrots, they are washed, scrapped and cubed after washing. Cubes are them blanched

and dried . These dehydrated vegetables are then packed and stored carefully. Packing

is very critical as any fungal growth would damage the product. Process and weight

loss varies from vegetable to vegetable, but on an average it is 25 % as the vegetables

are dehydrated. In other words, the input-output ration is 4:1.

6. PROJECT COMPONENTS & COST

a) Land & Building

The plot of about 500 sq. mtrs is required. The built up area requirement will be 220

sq. mtrs. Storage of vegetables would require area of 35 sq. mtrs, whereas packing

room and finished good godown will occupy about 60 sq. mtrs. Vegetable washing

tanks could be constructed adjacent to the raw material godown with asbestos sheets.

5

Main production hall will be of around 100 sq. mtrs. and balance 25 sq. mtrs could be

allotted for office and laboratory. The entire area has to be neat and clean and

completely hygienic. Considering price of land @ Rs. 500/- per sq. mtr. the total cost

of land would be Rs. 2.50 lacs whereas that of civil work it will be Rs. 13.20 lacs.

Construction cost is taken on a higher side as flooring, painting etc. of the building has

to be of superior quality to maintain hygienic standards.

b) Plant & Machinery

Easy and regular availability of fresh vegetables during each season and nearby urban

markets are the critical aspects for arriving at the installed production capacity for the

purpose of this note and with a view to minimizing initial capital investment. The

rated capacity is taken at 600 tons and 300 working days. The following machine shall

be required.

(Rs. in lacs)

Item Qty Price

Washing tanks with sets of cubers , slicers, etc, 2 1.00

Blanching tank with thermostat control 1 2.50

Stacking trays for vegetables 1 0.50

Pre-cooling facility for vegetables 1 2.50

Vibratory shakers 1 1.20

Fluidized bed dryer to dehydrate vegetables complete

with all attachments

1 7.00

Hot water boiler with attachments 1 2.50

Automatic form, fill and seal machines complete with

attachments

1 3.75

Pin mill with accessories of 50 kgs /hr. capacity 1 4.25

Testing equipments 1 set 1.25

Electrification 2.00

Total 28.45

6

c) Miscellaneous Assets

Other assets like storage racks and bins, aluminum top working tables, exhaust fans,

furniture and fixtures, electrical, plastic trays/ jars / tubs, office equipment etc. shall be

required for which a provision of Rs.3.25 lacs is made.

d) Utilities

Power requirement shall be 30 HP whereas water required for washing of vegetable

and for potable and sanitary purposes will be 20000 litrs /day. Total cost of utilities is

estimated to be Rs. 3.75 lacs.

e) Prel. & Pre Operative Expenses

There will be many expenses under this category like registration charges, market

survey expenses, scrutiny fee of the financial institution, pre production administrative

overheads including salaries, travelling, interest during construction and

implementation period, trial run expenses and so on. Hence, a provision of Rs. 3.50 lacs

is made.

f) Working Capital Assessment

As against rated capacity of 600 tons per year, capacity utilization of 60% is assumed in

the first year. At this activity level, the project would require working capital of Rs. 7.09

lacs as worked out here below:

(Rs. in lacs)

Particulars Period Margin Total Bank Promoters

Stock of Raw

material & packing

materials

½ month 25% 1.61 1.21 0.40

Stock of Finished

Goods

½ month 25% 2.48 1.86 0.62

Receivable ½ month 25% 3.00 2.25 0.75

Total 7.09 5.32 1.77

7

g) Project cost & Means of Finance

Item Amount (Rs. in lacs)

Land and Building 15.70

Plant and Machinery 28.45

Miscellaneous Assets 3.25

P & P Expenses 3.50

Contingencies @ 10% on Building and plant and machinery 4.16

Working capital margin 1.77

Total 56.83

Means of Finance

Promoters’ contribution 22.73

Term loan from Bank / FI 34.10

Total 56.83

Debt Equity Ratio 1.5:1

Promoters contribution 40%

Financial assistance in the form of grant is available from the Ministry of Food

Processing Industries, Govt. of India, towards expenditure on technical civil works

and plant and machinery for eligible projects subject to certain terms and conditions.

7) PROJECTED PROFITABILITY

a) Production Capacity

The rated production capacity of the plant is 600 tons per year whereas actual capacity

utilization is expected to be 60% and 75% during 1st year and 2nd year respectively.

b) Sales Revenue at 100%

As explained above, there will not be exact sales mix every month. It will vary

according to the availability of vegetables and their prices and consumer demand or

8

preferences . A firm tie-up with a large buyer may also change the sales mix. Hence,

average price realization is taken at Rs. 90,000/- per ton or Rs. 120.00 lacs per year.

c) Raw Material Required at 100%

The total requirement of raw material such as cabbage, cauliflower, spinach and

carrots is estimated at 600 MT/ annum.

Product Qty (Tons) Rate (Rs. /

Ton)

Value (Rs. in

lacs)

Vegetable 600 10,000 60.0

Packing Material 4.80

Total 64.80

d) Profitability statement

(Rs. in lacs)

S. No. Particulars 1st year 2nd year

A. Installed capacity 600 Tons

Capacity Utilisation 60% 75%

Sales Realisation 81 101.25

B. Cost of Production

Raw & Packing Materials 38.80 48.60

Utilities 2.25 2.81

Salaries 11.16 12.27

Stores and Spares 0.90 1.12

Repairs and Maintenance 1.20 1.50

Selling Expenses @ 5% 3.60 4.50

Administrative Expenses 1.80 2.25

Total 59.71 73.05

C. Profit before Interest & Depreciation 21.29 28.20

9

Interest on Term Loan 3.41 2.71

Interest on Working Capital 0.63 0.79

Depreciation. 4.16 3.74

Net Profit 13.09 20.96

Profit after tax 13.09 20.96

Cash Accruals 14.65 20.60

Repayment of Term Loan Nil 7

e) Break Even Point Analysis

S. No. Particulars Amount (Rs. in lacs)

(A) Sales 101.25

(B) Variable Costs

Raw Material 48.60

Utilities(70%) 1.96

Salaries (60%) 6.13

Stores and Spares 1.12

Selling and Distribution Exps (70%) 3.15

Admn Expenses (50%) 0.45

Interest on WC 0.79 62.20

(C) Contribution (A) – (B) 39.05

(D) Fixed Costs 12.98

(E) Break Even Point 34%

f) Debt Service Coverage Ratio (DSCR)

(Rs. in lacs)

Particulars 1st year 2nd year 3rd year

Cash Accruals 14.65 20.60 24.71

Interest on TL 3.45 2.71 2.00

10

Total (A) 18.05 23.31 26.71


Repayment of TL - 7.00 7.00

Total (B) 3.41 9.71 9.00

DSCR (A) / (B) 5.32 2.40 2.96

Average DSCR 3.56

g) Internal Rate of Return (IRR)

Cost of the project is Rs. 56.83 lacs (Rs. in lacs)

Year Cash Accruals 24% 28 %

1 18.05 14.54 14.09

2 23.31 15.15 14.21

3 26.71 13.99 12.74

4 26.71 11.29 9.96

5 26.71 9.10 7.71

6 64.07 58.71

The IRR is around 28%.

h) Manpower requirement

Particulars Nos. Monthly salary Total Monthly Salary (Rs.)

Machine operator 2 8500 17,000

Skilled Worker 2 8500 17,000

Semi Skilled Workers 4 6000 24,000

Helpers 3 5000 15000

Laboratory Technician 1 8000 7000

Salesman 1 8000 8000

Clerk 1 7000 7000

Total 93,000

11

8. ASSUMPTIONS

The plant will work for 300 days in a year. :

The operating capacity is 60% , 75%, 90 % during 1st year , 2nd year and 3rd year

respectively.

The interest on term loan is taken at 10% per annum and on working capital it is

12% per annum.

Price of raw material and selling price of finished products is taken at Rs. 10,000/

ton and Rs. 90,000/ ton respectively.

9. SOURCES OF TECHNOLOGY

CFTRI, Mysore, has successfully developed the technical know-how for the product.

BIS has laid down the quality standard. The compliance under FSSAI act is a must.

10. PLANT & MACHINERY SUPPLIERS

1. PENNWALT BERTUZZI

J-19, Saket New Delhi -17

Ph .011- 41764186 , 26522650 www.pennwalt.com

2. BAJAJ MASCHINEN PVT. LTD.

7/20-27, Jai Lakhmi Industrial Estate, Site IV, Sahibabad Indl. Area,

Distt. Ghaziabad (U.P.)

120-4639950 -99, 4372848 Email : [email protected]

3. Best Engineering Technologies

Plot No. 69 – A, No. 5-9-285/ 13, Rajiv Gandhi Nagar, Industrial Estate,

Kukatpally, Hyderabad – 500037, www.Bestengineeringtechnologies.com

4. Mather and Platt (India) Ltd.,

805-806, Ansal Bhavan, 16, Kasturba, Gandhi Marg, New Delhi – 110001

Ph. 23712840 /41

http://www.pennwalt.com/

http://www.bestengineeringtechnologies.com/

12

PROJECT PROFILE

FRUIT JUICE

1. INTRODUCTION

Fruits are important source of energy for human-beings but they are perishable items.

Hence since many years various products are made from juice of fruits so that they

can be consumed during off season as well. Products like jam, jelly, squash etc. are

made from fruits since long. With the advent of technology and preservatives, shelf

life of such products has gone up and they can be preserved for many months with

proper packing . The proposed location of this activity could be many centres in

India as number of tropical fruits are grown in the country. However, this note deals

with a project in West Bengal as several fruits like pineapples, mango, orange, guava

litchi, papaya etc. are cultivated in large quantities. Hence, it is suggested to undertake

fruit processing activity.

2. OBJECTIVES


MSME sector in and guiding making them aware of the opportunities of this sector. It

is also being developed by the Directorate of the Food Processing Industries,

Government of West Bengal to help entrepreneurs with knowledge about raw

materials availability, knowledge of market, source of technology and plant and

machinery suppliers. M/s ITV Agro & Food Technologies Pvt. Ltd., New Delhi has

helped in developing the project profile.


The all important raw material will be fresh, ripe and matured oranges and pineapples.

The Eastern states including WB are famous for horticulture products. The highest

fruit crop of WB is pineapple with production of more than 32.13 lacs tons / annum

13

whereas that of oranges and other citrus fruits is about 10.94 lacs tons/ annum. Thus

availability of few hundred tons of fruits will not pose any problem. Other items like

sugar, salt additives and preservatives etc. shall be available locally. Packing materials

like food grade plastic or glass bottles, labels, corrugated boxes, BOPP tape etc. shall be

required for which prior arrangement is advisable. Total production of fruits in West

Bengal is estimated to be 313.63 lacs MT/ year.



Fruits are liked by people of all age groups but they are available only during a specific

season. Due to high water or juice contents, they are perishable. Certain fruits require

very careful and consequently costly transportation. Hence many down- the- line

products like squash, fruit-juice concentrates, jam, nectars etc. are made from fruits

with preservative which increase their shelf-life substantially. Market for such products

has witnessed a quantum jump during last few years and with growing urbanization,

increase in disposable incomes and changing life styles, demand for them is steadily

going up. Total export of orange juice from India during the year 2010 -11, 2011-12, and

2012-13 is estimated to be Rs. 329.98 lacs, Rs. 99.06 lacs and Rs. 160 .99 lacs respectively.

Whereas export of pineapple juice from India during the year 2010 -11, 2011-12, and

2012-13 is estimated to be Rs. 22.16 lacs, Rs. 2.05 lacs and Rs. 25.76 lacs respectively.

b) Marketing Strategy.

There are some established brands available in the market but they are costly and hence

people would prefer low cost, good quality products. It is possible to introduce

competitive pricing for a small scale unit due to its inherent features. Proper care has

to be taken in creating and maintaining adequate network.

14



Fruits are perishable in nature and for their preservation, they need to be processed to

make juice, squashes, jams nectars etc. However, this note is restricted to making of

orange and pineapple juice.

b) Capacity

The proposed capacity of the plant is to process 300 MT / annum of fruits.


The manufacturing process for making fruit juice is standardized and not very

complicated or time consuming. CFTRI, Mysore, has successfully developed this

technology. In the first process, fully ripe and matured fruits are washed, cleaned

graded and then peeled. Thereafter juice is extracted from fruits and then it is filtered

to remove seeds, fibres etc. This juice is then processed, sterilized and bottled after

adding preservatives. In case of squash, syrup of sugar along with preservatives are

added to juice and this mixture is stirred till uniform solution is formed and then it is

bottled. As regards oranges, recovery of juice is substantial and weight and process loss

is 10%. But in case of pineapple, wastages are around 50% . Process loss 5-6% is

compensated by addition of ‘sugar syrup.


a) Land & Building

Total requirement of built –up area shall be around 300 sq. mtrs. and hence land

measuring about 500 sq. mtrs. will be adequate. The built –up area is adequate to have

production, storage and packing facilities. Cost of land Rs. 75,000/- and that of civil

work Rs. 18.00 lacs. FSSAI provisions about layout of factory building must be adhered

too.

15


In view of size of the market and to ensure economic viability of the project, rated

production capacity of 300 tons per year and 300 working days is advisable. To install

this capacity following machines shall be required:

(Rs. in lacs)

Item Qty Price

Fruit washing tanks 2 0.50

Juice Extractors 2 5.00

Steam Jacketed Kettles- 60 ltrs. capacity 2 1.50

Stirrer 1 0.25

Baby Boiler – 100 kgs/hr 1 3.50

Bottle washing and filling machine 1 3.00

Testing equipments like Refracto Meter Salinometer,

pipette, Burette etc.

1.25

Total 15.00


Many other assets like stainless steel utensils, plastic, tubs exhaust fan, storage racks,

furniture & fixtures, etc shall be needed. A provision of Rs. 3.00 lacs is made for the

same.

d) Utilities

Power requirement will be 30 HP whereas per day water requirement would be 30000

liters for washing of fruits and for potable and sanitation purposes. Hard coke of

around 25 tons will be required annually for boiler. The cost of utilities is estimated at

Rs. 2.0 lacs.

16


There are certain expenses which are incurred prior to the commencement of

production such as registration, establishment and other administrative expenses,

interest during implementation and so on . A provision of Rs. 2,00,000/- is made

towards them.


Against installed production capacity of 300 tons per year, actual capacity utilization in

the first year is expected to be 65% . At this level of activity, the working capital needs

will be as under :

(Rs. in lacs)


Stock of packing materials 1 month 30% 0.47 0.33 0.14

Stock of Finished Goods ½ month 25% 1.81 1.36 0.45


Stock of raw material ¼ month 25% 0.55 0.42 0.13

Total 5.23 4.01 1.22

g) Project cost & Means of finance





P & P Expenses 02.00

Contingencies @ 10% on building and plant & machinery 3.30


Total 43.28

Means of Finance


Term loan from Bank /FI 25.97

17

Total 43.28









utilization is expected to be 60% and 75% during the 1st year & 2nd year respectively.


Product Qty (Tons) Selling Price (Rs. / Ton) Sales (Rs. in lacs)

Orange Juice 50 70,000 35.5

Pineapple juice 100 60,000 60.00

Total 95.50

c) Raw Material Required at 100% (Rs. in lacs)

Product Qty (Tones) Rate (Rs. / Ton) Value

Oranges 100 20,000 20.00

Pineapples 200 12,000 24.00

Sugar - - 1.00

Additives, Preservatives, Flavours,

etc

- - 1.00

Packing Material@ Rs. 5000 /Ton - - 7.50

Total 53.50

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d) Profitability statement (Rs. in lacs)


A. Installed capacity 300 Tones


Sales Realisation 57.00 71.25


Raw Materials 26.40 33.00

Packing Materials 5.70 7.10

Utilities 1.20 1.50

Salaries 5.50 6.05





Total 43.60 53.69








Repayment of Term Loan Nil 5.0

19



(A) Sales 71.25

(B) Variable Costs

Raw &Packing Material 40.10

Utilities(70%) 0.97

Salaries (60%) 3.93







(E) Break Even Point 33 %


(Rs. in lacs)


Cash Accruals 10.43 17.16 20.59


Total (A) 13.02 19.25 22.18



Total (B) 2.59 7.09 6.59

DSCR (A) /(B) 5.02 2.71 3.36

Average DSCR 3.69

20


Cost of the project is Rs. 43.28 lacs

(Rs. in lacs)

Year Cash Accruals 24%

1 10.43 8.34

2 17.16 11.15

3 20.59 10.78

4 20.59 8.70

5 20.59 7.02

Total 45.99



Particulars Nos. Monthly Total Monthly Salary (Rs.)

Skilled Worker 2 7,500 15,000

Semi Skilled Workers 2 6,000 12,000

Helpers 4 5,000 20,000

Salesman 1 8,000 8,000

Total 55,000

8. ASSUMPTIONS



respectively.


12% per annum.

Price of pineapple and orange is taken at Rs. 12, 000 / ton and Rs, 20,000/ ton

respectively.

21

















Ph. 23712840 /41


mailto:[email protected]


22

PROJECT PROFILE

INSTANT DRIED PICKLES

1. INTRODUCTION

Pickling is the process by which fresh fruits and vegetables are preserved and with

the addition of salt, chilly and spices, a tasty preparation known as pickle is made .

Pickles are also good appetizers and digestive agents. There are several varieties of

pickles and they are consumed throughout the year by people from all walks of life

unimaginable quantities of pickles are consumed round the year. On an average, each

family consumes about 2 kgs. of pickles every year. Sensing this potential, CFTRI has

successfully developed and standardized a process of making instant pickle mixes.

With addition of oil and water, fresh pickles can be made from these mixes.

2. OBJECTIVES









Many material like raw mangoes, lemons, green chillies, carrots etc. shall be required.

Since except green chillies and lemons, all other products are available only during

certain seasons, they should be cured and dehydrated during the season and stored

properly for use during off season . Dry spices like red chilies, turmeric, mustard etc.

23

are available round the year and quantity required is also very small. Printed polythene

bags will be required for packing for which proper arrangement has to be made.


a) Demand and supply

This is comparatively a new concept and the promoters should have the required

background and expertise . Marketing would involve selling of concept at least

initially. Proper market research has to be carried out before finalizing the project.

b) Marketing strategy

This concept would appeal to many consumers especially the urban and semi-urban

middle, upper middle class and rich families. Apart from neat and clean product and

hassle-free packing the consumers can have different varieties at different times

without bothering about storage of many varieties of ready pickles. Restaurants, small

eateries and road-side dhabas would also prefer it as they need not store their

requirement for a longer period, savings in investment and storage space too. Thus,

the product would certainly appeal to certain segment of consumers and they need to

be approached for market analysis. Initial publicity and placement of products must

be planned systematically. A combination of consumer packing and bulk packing may

also be thought of.



Instant pickle mix is a dry mix which can be converted to pickle with the addition of

water and edible oil in the required quantity in about 8-9 hours. Thus, this product is

easy to pack, handle and transport. Presently this technology has been developed for

mango and lime. This project can be set up in any part of the country but this note

considers West Bengal as the location.

24

b) Capacity

The proposed capacity of the plant is to process 90 MT / annum of Instant pickle

mixes.


Fully grown and fresh raw mangoes, lemon and other fruits and vegetables are

washed in water and then cut into the required size . Then they are cured by bringing

them for about 7-8 hours and are dehydrated in dryer. Simultaneously, dry spices like

red chillies , turmeric, mustard etc. are grounded separately and are mixed with cured

and dried pieces of mangoes, lemon or other fruits and vegetables. Finally, they are

packed in polythene bags as per pre determined quantity (sales-mix) and sealed.

Weight loss due to dehydration would be in the range of 10% to 15%. The consumer has

to soak this dry mix with the suggested quantity of water and oil for around 8 hours

and the pickle is ready.


a) Land & Building

A building of around 60 sq. mtrs be bought to save on capital cost of land. This may

cost Rs. 3.60 lacs. Production area would need around 30 sq. mtrs. and storage and

packing area would occupy the remaining space.


Proposed production capacity would determine the requirement of machines.

Assuming rated capacity of 90 tons per year with 300 working days on single shift per

day, the following machines are suggested :

Item Qty Price (Rs. in

lacs)

Electrically operated Tray-dryer with 48 trays 1 5.00

Spice grinding mill 1 2.50

25

Frying pans, SS knives and cutters, SS utensils etc. - 1.50

Weighing – scales and Heat sealing machines - 2.00

Total 11.00


Some other assets like furniture and fixture, plastic crates & tubs, working tables,

storage racks etc. shall also be required for which a provision of Rs. 2.50 lacs is

adequate.

d) Utilities

Power requirement shall be 15 HP whereas per day water requirement shall be 1000

ltrs. for washing of fruits or vegetables and for potable and sanitation purposes. The

cost of utilities is estimated around Rs. 1.65 lacs.


Many expenses shall have to be incurred prior to commercial production like market

survey, registration , establishment and administrative expenses, trial run expenses,

interest during implementation, travelling etc. A provision of Rs. 1.50 lacs should be

adequate.


Capacity utilization in the first year is assumed to be 50%. To achieve this level,

following working funds will be needed.

(Rs. in lacs)


Stock of Finished

Goods

½ month 25% 1.27 0.95 0.32


Raw material ½ month 30% 1.67 1.17 0.50

Total 4.50 3.33 1.17

26






P & P Expenses 1.50



Total 21.23

Means of Finance


Term loan from Bank FI 12.74

Total 21.23








As against the rated capacity of 90 tons per year , the plant is assumed to operate at 50%

in the first year as marketing and product acceptance would take some time. Second

year onwards it is assumed to be 70%.


Assuming selling prices of Rs. 1.00 lacs per ton sales income for 75 tons would be Rs.

75.00 lacs.

27


Total requirement of raw material such as raw mangoes and lemon is estimated to be 90

tons/ year. In addition to this, other material such as salt, spices and plastic bag would

also be required.

(Rs. in lacs)


Raw Mangoes 45 25,000 11.25

Raw lemon 45 40,000 18.00

Salt & Spices - - 5.00

Plastic Bags Corrugated Boxes etc. - - 6.00

Total 40.25


(Rs. in lacs)






Raw material & packing Materials 20.12 28.17

Utilities 1.00 1.40

Salaries 3.66 4.00





Total 30.53 41.62

28








Repayment of Term Loan NIL 3.0


S. No. Particulars Amount( Rs. in lacs)

(A) Sales 52.50

(B) Variable Costs

Raw material & packing Material 28.17

Utilities(70%) 0.98

Salaries (60%) 2.80




Interest on WC 0.56




f) Debt Service Coverage Ratio (DSCR) (Rs. in lacs)


Cash Accruals 5.30 9.35 12.02


29

Total (A) 6.57 10.32 12.69


Repayment of TL Nil 3.0 3.00

Total (B) 1.27 3.97 3.67

DSCR (A) / (B) 5.17 2.59 3.45

Average DSCR 3.73



Year Cash Accruals 20% 24%

1 5.30 4.41 4.27

2 9.35 6.40 6.07

3 12.02 6.95 6.29

4 12.02 5.79 5.08

Total 23.55 21.71





Helpers 3 5,000 15,000

Salesman 1 8,000 8,000

Total 30,500

8. ASSUMPTIONS



respectively.

30


12% per annum.

Price of raw material i.e. mango Rs.25000/ ton and lemon Rs. 40,000/ton and

selling price of finished products is taken at Rs. 1,00,000 / ton.

















Ph. 23712840 / 41




31

PROJECT PROFILE

JAM / JELLY/MARMALADE

1. INTRODUCTION

Jam / Jelly /marmalade are made from fruits and they are being made since long in

different forms. The methods of production were not very sophisticated but these

products were made in conventional manner in many homes. Since availability of

fruits is only seasonal, mankind had found out various ways to preserve them for

consumption during off- season . Thus, jam & jelly were popular, albeit in different

forms since long. With fruit processing techniques being modernized, we see them in

present day refined version. But this note is about producing these products with

conventional methods on a very small scale.

2. OBJECTIVES









The major raw material required will be fresh fruits. Pineapple, orange and jackfruit are

known fruits but there are many other fruits grown in this region like orange, litchi,

guava, mango, and so on. Since annual requirement of each fruit will not be more

much, no difficulty is envisaged on this front. Other materials like sugar, pectin, citric

32

acid, food grade colours, flavours etc. are available locally without any difficulty.

Production of mango, orange and pineapple in the state is estimated to be 6.90 lacs

MT, 10.94 lacs MT and 32.13 lacs MT / annum respectively.



Jam & Jelly are used in homes as well as restaurants and other eateries. These items are

mainly consumed in urban areas. But these products are very popular in the Eastern

region of India and the consumption is increasing year after year. Presently, there are

many small units producing these products in the state and there is a wide gap

between demand and supply which is met by the manufacturers from outside the

region. Export of jam & jelly from India during the year 2010 -11, 2011-12, and 2012-13

is estimated to be Rs. 26560.00 lacs, Rs. 39758.00 lacs and Rs. 46122 lacs respectively.


There are many locally grown and popular fruits from which these products can be

made but this aspect is still unexplored. Still, few small scale units can certainly be set

up. The thrust has to be on the taste palatable to local demand and hence there is a very

good scope for imagination. Product mix may have to be changed from time to time.

Informal test marketing can also be undertaken to ascertain feedback and accordingly

some modifications may have to be done. The objective is filling the gap in terms of

consumer preference rather than offering a standard product.



Jam & Jelly/ marmalade are made from fruits, fruit pulps or extracts. Jam is boiled fruit

pulp with sugar and preservatives and is thick. Jelly is also made by boiling, but is

clear, sparkling and transparent. These products are applied to some snacks or bread.

They are also used in making certain desserts. They enjoy substantial shelf life and thus

33

can be made available round the year. These products can be produced in many states

of the country. The state of West Bengal is kept in mind while preparing this note as

availability of fruits round the year is necessary.

b) Capacity



Fresh fruit are washed in water and after removing their skin they are cut or sliced in

small pieces. These pieces are boiled with water. Appropriate quantity of sugar is mixed

with the pulp. When the temperature is around 60° C, citric acid, colour, essence etc.

are added. This mixture is then stirred for a while , cooled and then packed in bottles.


a) Land & Building

The unit is planned on a very moderate scale and hence one should try to obtain

constructed area of around 75 sq. mtrs . However, to ascertain the exact viability of the

project, investment of Rs. 4,50,000/- is estimated for own building.


It is envisaged that the conventional production techniques will be employed and hence

there is no need to install a modern plant. Recommended installed production capacity

is 150 tonnes per year on single shift working and 300 working days for which

following machines / equipments need to be installed.

Item Qty Price (Rs.)

Pulper – 90 Kgs 1 2,50,000

Juice Extractors 150 ltrs. 2 3,00,000

Mixer / Grinder-50 kgs 2 1,00,000

34

Cap sealing machine 2 50,000

Slicers 4 50,000

Bottle washing machine 1 25,000

Total 7,75,000


There will be requirement of some other assets like weighing scale, glassware, working

table, canteen burners, stainless steel utensils. Hand gloves, cutters and graters, storage

racks etc. for which a provision of Rs. 2,00,000/- is adequate. Testing equipment like jell

meter, refractometer etc. would cost an additional amount of Rs. 50,000/-

d) Utilities

Power requirement would be 15 HP whereas daily requirement of water will be around

10,000 ltrs. In addition to this cooking gas shall be required : At 100% activity level per

year, cost of utilities is estimated to be Rs. 4.25 lacs.


A provision of Rs. 1.50 lacs is made which can take care of expenses like

establishment charges, interest during implementation, trial runs etc.


Against annual capacity of 150 tonnes, the plant is expected to be operated at 60% in

the first year. To achieve this capacity utilization, the working capital needs would be

as under :

35

(Rs. in lacs)


Stock of packing raw

materials

½ month 30% 1.22 0.86 0.36

Stock of Finished

Goods

½ month 25% 1.82 1.37 0.45

Receivable 1 month 25% 4.39 3.27 1.08

Total 7.39 5.50 1.89






P & P Expenses 1.50



Total 19.36

Means of Finance


Term loan from Bank/ FI 11.59

Total 19.36


Promoters contribution 40




36



The installed production capacity at 100% shall be 60 tons of jam & jelly considering

single shift working every day and 300 working days every year. The plant is

envisaged to be operated at 60% in the first year and 75% thereafter.


As explained earlier, jam & jelly from different fruits including some locally grown and

popular fruits shall be prepared and hence it is not feasible to arrive at the exact sales

mix. This in turn, means that the selling price has to be worked out on an average

basis. Therefore, the average selling price is assumed to be Rs. 145 / per .kg or Rs.

145000 / MT per ton. In other words, annual turnover at 100% could be Rs. 87 lacs.


It is suggested that jam & jelly should be made from some local fruits as this may be

very well accepted by the natives. Hence, apart from fruits like pineapple, orange and

guava, some other fruits shall also be required e.g mango, papaya , jackfruit etc. Fruits

are grown during respective seasons and their prices vary depending upon the

availability. Hence, average price per ton is taken @ Rs. 20,000. Juice and pulp contents

also vary from fruit to fruit. Hence, it is assumed to be 40 %. Other material like

sugar , essence, pectin, citric acid shall be available locally. Packing materials like food

grade plastic/ glass bottle, polythene bags, corrugated boxes etc. shall be procured

locally. Thus, at 100% activity level, the raw materials requirement shall be as under.

(Rs. in lacs)


Fruits 150 20,000 30.00

Sugar 30 28,000 8.40

Pectin, Citric Acid etc. - - 1.50

Packing Material - - 9.00

Total 48.90

37








Utilities 2. 55 3.18

Salaries 4.50 4.95




Total 43.71 53.94











(A) Sales 65.25

(B) Variable Costs

Raw & Packing Material 36.67

38

Utilities(70%) 2.22

Salaries (75%) 3.71











Total (A) 7.83 10.48 12.14



Total (B) 1.15 3.40 3.15

DSCR (A) / (B) 6.80 3.08 3.85

Average DSCR 4.57




1 6.68 5.56 5.21

2 9.56 6.63 5.83

3 11.49 6.65 5.48

4 11.49 5.53 4.28

Total 25.37 20.80


39



Supervisor 1 8,000 8,000

Semi Skilled Worker 2 6,000 12,000

Helpers 2 5,000 10,000

Technician 1 7,000 7,000

Salesman 1 8,000 8,000

Total 45,000/-

8. ASSUMPTIONS



respectively.


12% per annum.

Price of raw material and selling price of finished products is taken at Rs. 20,000

/ ton and Rs. 1,45,000 / ton respectively.









40










Ph. 23712840 / 41



41

PROJECT PROFILE

SQUASH ( NATURAL & SYNTHETIC)

1. INTRODUCTION

Fruits are an important source of energy for human-beings. But their availability is

seasonal and they are perishable. Hence, they need to be processed and preserved

which also results in value- addition. India produces many varieties of citrus fruit and

the project can be set up in states like Maharashtra, Uttaranchal, HP and the Eastern

states. The state of West Bengal is not an exception and many fruits like pineapple,

orange, lemon, mango etc. are grown in large quantities. Hence fruit squash making

activity on small scale is suggested.

2. OBJECTIVES









The all-important raw material will be fresh fruit. The North-East region grows many

fruits. West Bengal also has many varieties of fruits like pineapple, orange, jack-fruit,

guava etc. There are some special varieties of fruits like mango, lemon, guava, litchi

etc. and squash of these fruits could be very popular with the locals. Other materials

required will be sugar, additives, preservatives etc. Packing materials like food grade

plastic / glass bottles, polythene bags and corrugated boxes shall also be required.

42



Fruits are popular amongst all age groups but their availability is limited during season

only which lasts for a period of 3-4 months for most of the fruits. Hence, squashes are

becoming popular. They are sold at many places like provision and departmental

stores, cold drink centres, restaurants etc. and since they have a longer shelf life,

consumers prefer them. Yet another feature is that they are very easy to make . Only

required quantity of water is to be added. . Total export of orange squash from India

during the year 2010 -11, 2011-12, and 2012-13 is estimated to be Rs. 133.80 lacs, Rs.

258.95 lacs and Rs. 59.98 lacs respectively. Whereas export of pineapple squash from

India during the year 2010 -11, 2011-12, and 2012-13 is estimated to be Rs.31.21 lacs, Rs.

59.87 lacs and Rs. 33.61 lacs respectively.

b) Marketing strategy

With changing life styles and increase in disposable income, this product is gaining

more and more popularity. Squashes of some conventional and selected fruits are

available in the market but it is worth trying some fruits grown in West Bengal as their

tastes are palatable to local population. This would also provide an edge over other

competitors.



Squashes are sweetened juice of fruits containing some pulp. They contain at least 25%

(by volume) of fruit juice and are consumed after dilution. Squashes also contain added

flavours. Since preservatives are added in adequate quantities, the shelf life of squashes

is fairly longer.

43

b) Capacity


d) Manufacturing process

The process is not very complicated. Good quality ripe fruits are washed, peeled and

cleaned. Then juice is extracted from fruits and it is filtered to remove seeds and fibres.

Then juice is processed and sterilized and then syrup of sugar, preservatives etc. are

added and this mixture is stirred till uniform solution is formed. In the final process,

bottling and packing is done. The process flow chart is as under :


a) Land & Building



production, storage and packing facilities. Cost of land Rs. 75,000/- and that of civil

work Rs. 18,75,000/- FSSAI provisions about layout of factory building must be

adhered too.


It is desirable to install production capacity of 100 tons per year of fruits and around 300

days in a year. Installation of the following equipments would be necessary to do this.

(Rs. in lacs)

Item Qty Price




Stirrer 1 0.25

Baby Boiler – 1 3.50

44


Testing equipments - 1.25

Mixing Tank 2 1.00

Total 16.00


The project would require other assets like furniture & fixtures, storage racks, exhaust

fans, SS utensils, etc for which a provision of Rs. 3.00 lacs is made.

d) Utilities

Total power requirement shall be 30 HP whereas water requirement will be 10,000

litres per day. Annual expenditure under this head at 100% capacity utilization would

be around Rs. 2.50 lacs.


There will be certain expenses like administrative, interest, trial runs, etc. before

commencing the production . A provision of Rs. 2.00 lacs is adequate to take care of

them.


Capacity utilization in the first year is expected to be 60%. To achieve this level,

working capital of Rs. 7.26 lacs shall be required as worked out hereunder :

(Rs. in lacs)


Stock of Finished

Goods

½ month 25% 2.01 1.51 0.50


Raw material ½ month 25% 2.75 2.07 0.68

Total 7.26 5.46 1.80

45

f) Project cost & Means of finance






Contingencies @ 10% on building and plant and machinery 03.40


Total 44.95

Means of Finance



Total 44.95








Installed capacity of the plant shall be 100 tons per year of fruit processing. Capacity

utilization in the first year is assumed to be 60% and second year onwards 75%.


It is recommended to make squashes from different fruit like Pineapple & Orange and

selling price may vary from product to product . Hence, average sales realization of Rs.

46

50,000/- per ton or Rs. 50/kg is considered. With this assumption, the annual sales at

100% would be Rs. 100.00 lacs.

Product Qty (Tones) Selling Price (Rs. /

Ton)

Sales (Rs. in lacs)

Orange Squash 100 55,000 55.00

Pineapple Squash 100 55,000 55.00

Total 110.00 lacs


Quantity of juice in each category of fruit varies substantially. In case of pineapple or

jackfruit, there are considerable wastages due to their thick skin. Hence, it is assumed

that the average recovery or availability of juice shall be 50% . Likewise prices of fruits

also vary. Hence, average price of fruits is taken at 16,000/ ton. Accordingly following

calculation are made :

(Rs. in lacs)


Fruits (orange and pineapple) 100 16,000 16.00

Sugar 90 30,000 27.00

Preservatives etc - 02.00

Packing Material - 10.00

Total 55.00

d) Profitability statements

(Rs. in lacs)





47


Raw material & Packing Materials 33.00 41.25

Utilities 1.50 1.87

Salaries 5.50 6.05





Total 48.40 59.66








Repayment of Term Loan nil 5.00



(A) Sales 82.50

(B) Variable Costs

Raw material & Packing Material 41.25

Utilities(70%) 1.30

Salaries (70%) 4.23

Stores & spares 0.18



48







Cash Accruals 14.36 19.84 23.80


Total (A) 17.05 21.03 25.49



Total (B) 2.69 7.19 6.69

DSCR (A) /(B) 6.33 2.92 3.81

Average DSCR 4.35



(Rs. in lacs)


1 14.36 10.77

2 19.84 11.38

3 23.80 10.35

4 23.80 7.83

5 23.80 5.95

Total 46.28


49



Skilled workers 2 7,500 15,000


Helpers 5,000 20,000

Salesman 1 8,000 8,000

Total 55,000

8. ASSUMPTIONS



respectively.


12% per annum.


/ ton and Rs. 55,000 / ton respectively.









50







Kukatpally, Hyderabad – 500037, www.bestengineeringtechnologies.com



Ph. 23712840 / 41



51

PROJECT PROFILE

TOMATO PRODUCTS

1. INTRODUCTION

Tomato is a very popular vegetable throughout the country and it is grown in many

states. Apart from use in vegetables its downstream products like soup, concentrates,

sauce, puree, ketchup are also equally popular and they have a longer shelf life unlike

fresh tomatoes. Tomato is perishable and needs to be transported carefully to avoid

damage during transit. With the advent of new technology, many down the line

products are made and are consumed round the year as table enriches.

2. OBJECTIVES









The most critical raw material will be fully grown and ripe tomatoes. They are grown

almost all over West Bengal with annual production of more than 11.00 lacs tons.

Thus, availability of good quality tomatoes will not be a bottleneck . Other materials

like sugar, various types of spices, vinegar, salt will not be required in large quantities

and will be available locally. Regarding packing materials, glass bottles of 500 gms and

1 kg. shall be required with caps and corrugated boxes for outer packing. Other items

like labels, BOPP tape etc. will also be needed.

52



Tomatoes are available during the season at cheaper rates and prices start shooting up

during off-season. But main reason for these products becoming popular is their

extensive use as enriches along with bread and other such preparations in making

some fast food items like pizza, burger, hot dogs etc. and as additives with many food

preparations. Hence, these products are witnessing increase in demand year after year.

They have already become popular in urban and semi-urban areas and are now

making in- roads in rural markets as well. Thus, there is a good scope for these

products especially in semi –urban and rural areas. Export of tomato products from

India during the year 2010 -11, 2011-12, and 2012-13 is estimated to be Rs. 2913.87 lacs,

Rs.1792.67 lacs and Rs. 2204.14 lacs respectively.


There are many established national as well as regional brands but they have captured

mainly the urban and elite markets and for a quality product, there is a vast market

which can be penetrated by offering competitive prices. Apart from a growing

household market, other lucrative segment is eateries, restaurants, sandwich makers,

fast food joints etc. Marketing would play a crucial role and placement, publicity,

commission to retailers etc. are important aspects.



The products suggested are sauce, ketchup and puree. They are made from tomato juice

and many other ingredients and preservatives are added to it to enhance its shelf life

and taste. These products are consumed by people of all age groups and demand is

going up. These products can be made in states like Maharashtra, Gujarat, Karnataka,

53

UP, HP, North Eastern states and so on but this note considers West Bengal as the

preferred location in view of the growing market.

b) Capacity

The proposed capacity of the plant is to process 750 MT / annum of Tomatoes.


Fully grown or matured and ripe tomatoes are thoroughly washed preferably in

running water. Afterwards, they are boiled in the steam jacketed kettles to facilitate

pulping. During pulping juice is extracted and other solid material are separated. This

extracted juice is the basic material from which other products are made. Sauce is made

by concentrating juice and during the process; salt, sugar, vinegar, spices, preservatives,

onion etc. are added to the extent that the mixture contains not less than 12% tomato

solids and 28% total solids. Sauce is passed through sieve to remove fibrous and other

materials. In case of ketchup, the process is more or less same, but many spices like

ginger, garlic, clove, pepper are added with salt, sugar, vinegar and preservatives.

While making puree, juice is concentrated under vacuum with around 9% to 12%

solids. Products are then packed in bottles. Depending upon quality of tomatoes,

recovery of juice varies from 45% to 50.%.


a) Land & Building

A plot of land measuring 300sq.mtrs. is suggested. Considering the price as Rs. 500/-

per sq. mtrs. the cost of land would be Rs. 1,50,000/- Requirement of total constructed

area will be about 150 sq. mtrs. A large production hall of around 75 sq. mtrs.

packing room of about 25 sq. mtrs. and office etc. of 25sq. mtrs, would suffice. Cost of

construction is taken at Rs. 6000/- per sq. mtrs. Thus, total expenditure on civil work

will be Rs.9.00 lacs

54


Keeping in mind the overall size of the market and the financial viability or

economics of the project , it is suggested to have rated production capacity of 750 tons

per year with 300 working days. To facilitate installation of this capacity, following

set of machineries will be needed.

Item Qty Price (Rs.)

Baby Boiler 1 3,50,000

Steam jacketed kettles 3 2,25,000

Fruit washing tanks 2 40,000

Pulper 1 2,50,000

Stirrer 3 25,000

Vacuum filling machines 2 2,50,000

Bottle washing machine 2 2,00,000

Crown corking machine 2 20,000

Concentration tank 1 50,000

Laboratory equipments 1 set 50,000

Precision weighing scale 1 40,000

Total 15.00 lacs


Expenditure of Rs. 2.50 lacs is considered for other assets like aluminum top working

tables, furniture and fixtures, plastic buckets / tubs, storage rack and bins, SS utensils

etc.

d) Utilities

Total power requirement shall be 35HP whereas water requirement per day will be

10,000 ltrs. for washing of tomatoes and for sanitation and potable purposes. Coal will

be required for boiler . The total cost of utilities at 100% capacity level is estimated to be

Rs. 4,50,000/-

55


For pre-production expenses like registration and establishment charges, travelling ,

other administrative expenses, interest during implementation, trial runs etc. an

amount of Rs. 1.50 lacs is set aside.


It is envisaged that the plant would operate at 60% in the first year. At this activity

level the following working capital needs are estimated :

(Rs. in lacs)


Stock of packing

Material

½ month 30% 0.75 0.53 0.22

Stock of Finished

Goods

½ month 25% 5.00 3.75 1.25


Stock of Raw

material

¼ month 25% 1.53 1.18 0.35

Total 12.68 9.51 3.17

g) Project cost & Means of Finance





P & P Expenses 1.50



56

Total 35.07

Means of Finance



Total 35.07








The rated production capacity of the plant is to process 750 tons per year of tomatoes

whereas actual capacity utilization is expected to be 60% and 75% during 1st year & 2nd

year respectively.


Product Qty (Tones) Selling Price (Rs. / Ton) Sales (Rs. in lacs)

Tomato Sauce 125 65,000 81.25

Tomato Ketch-up 125 70,000 87.50

Tomato Puree 50 1,00,000 50.00

Total 218.75


Recovery of juice from tomato is 45-50%. To arrive at the realistic projection, it is taken

at 40%. Prices of tomatoes vary from Rs. 10,000/- to Rs. 20,000/- per ton depending

upon season. Hence average purchase price is considered to be Rs. 15,000/- per ton.

57

(Rs. in Lacs)


Tomatoes 750 15,000 112.50

Sugar 20 28,000 5.60

Vinegar, spices, salt and

preservatives

- 4.50

Glass bottle of 500 gms. 3,00,000 4.00 12.00

Glass bottle of 1 kg. 1,50,000 7.00 10.50

Corrugated Boxes 15,000 4.00 6.00

Labels, BOPP Tape etc. - - 1.50

Total 152.60


(Rs. in lacs)








Utilities 2.70 3.37

Salaries 9.00 9.90





Total 120.48 148.97

58











(A) Sales 163.50

(B) Variable Costs

Raw Material 91.95


Utilities(70%) 2.35

Salaries (60%) 5.94


Selling Exps (70%) 11.20






59





Total (A) 8.10 13.15 15.14



Total (B) 2.10 5.61 5.30

DSCR (A) / (B) 3.85 2.34 2.85

Average DSCR 3.01




1 7.0 5.92

2 11.54 8.20

3 13.84 8.42

4 13.84 7.14

5 13.84 6.04

35.72






Helpers 4 5,000 20,000

Salesman 2 8,000 16,000

Total 90,000

60

8. ASSUMPTIONS



respectively.


12% per annum.

Price of raw material i.e. tomato is taken at Rs. 15,000/- ton and selling price of

finished products is i.e. sauce, ketch-up and puree is taken at Rs. 65,000 / ton ,

Rs. 70,000 / ton and Rs 1,00,000 / per ton respectively.

















Ph. 23712840 / 41




61

PROJECT PROFILE

TAMARIND POWDER & CONCENTRATE

1. INTRODUCTION

Tamarind trees are grown in almost all parts of the country and India is a leading

producer of tamarind fruits. Due to some peculiar food habits of the Indians, juice of

tamarind fruit is used regularly in many food as well as snack preparations. Tamarind

fruits are rarely used directly. Instead, they are soaked in water for some time and

then juice is extracted manually . This process is not only clumsy but unhygienic as

well. Hence, tamarind powder has become popular. It is available in compact form ,

very convenient to use and there is no need to bother about disposal of residue as is

the case when dry tamarind is soaked in water.

2. OBJECTIVES









Dried tamarind fruits is the only raw material . Tamarind trees are grown throughout

the West Bengal and the nearby states of Bihar and Orissa are leading producers.

Good quality plastic bags of 100 gms. capacity with aluminium foil lining and cartons

62

and BOPP tape shall be the packing material . Production of tamarind in West Bengal is

negligible and a proper tie-up is required before starting the project.


Dried tamarind fruits are an integral part of Indian cuisine and is extensively used in

many food and snack preparations. It is a mass consumption item used round the year .

Apart from individual households, it is used in large quantities in restaurants, dhabas

road-side eateries, hotels and canteens and many such places. But the conventional

method of soaking dry tamarind in water and then squeezing it by hand is unhygienic

and inconvenient. Hence tamarind concentrate and powder have become acceptable.

Tamarind in powder form is easily soluble, is in compact form and very convenient to

transport. With increasing health awareness and improved standard of living,

tamarind power had good market potential. There is a distinct possibility of exports to

countries where Indians are settled like gulf and African countries, the USA, Australia

etc.



Tamarind fruits are used in all parts of the country round the year. Tamarind powder is

a hygienically prepared item and is a substitute for home-made tamarind paste or

liquid. Powder is easily soluble and exact quantity is used. This project can be set up in

many states of the country but this note considers West Bengal as the preferred location.

b) Capacity

The proposed capacity of the plant is to process 250 MT / annum of Tamarind.


It is easy and well-established. Dried tamarind fruits are cleaned and after soaking them

in water they are boiled in steam jacketed kettle for about 40-45 minutes. Then pulp is

63

extracted in pulper and dried in drum type drier and on cooling, the final product is

packed. Recovery or yield is around 45%.


a) Land & Building

A readymade building of about 80 sq. mtrs. can accommodate the main production

area, storage and packing. Cost of building is envisaged to be Rs. 4.80 lacs.


Annual rated processing capacity of 250 tonnes with 300 working days would need the

following machines :

(Rs. in lacs)

Item Qty Price

SS Jacketed Kettle 1 3.00

Pulper 1 1.70

Baby Boiler 1 3.00

Drum Type Dryer 1 6.00

Laboratory equipments, Weighing Scales, SS Tank and

Utensils, Bag-sealing machine etc.

1 2.10

Total 15.80


The project would require other assets like exhaust fans, stainless steel vessels for

storage, furniture, racks etc. for which a provision of Rs. 1.70 lacs is necessary.

d) Utilities

Total power requirement shall be 30 HP whereas daily water requirement would be

5000 ltrs. The cost of utilities is estimated to be 1.80 lacs / Annum.

64


Pre-production expenses like registration, establishment, travelling and administrative

charges, interest during implementation, trial runs etc. would cost Rs. 1.75 lacs.


At 60% capacity utilization in the first year the working capital needs would be as

under : (Rs. in lacs)


Stock of Raw

material & Packing

Material

½ month 30% 2.0 1.40 0.60

Stock of Finished

Goods

½ month 25% 2.76 2.07 0.69


Total 7.94 5.86 2.08

g) Project cost & Means of finance (Rs. in lacs)

Item Amount




P & P Expenses 1.75



Total 28.15

Means of Finance



65

Total 28.15





and plant and machinery for eligible projects, subject to certain terms and conditions.


a) Sales Revenue at 100%

Assuming selling price of Rs. 113 and yield of 45%, the annual sales at 100% would be

Rs. 127.12 lacs.

b) Raw Material Required at 100%


Ton)

Sales (Rs. in lacs)

Dried Tamarind

Fruits

250 30,000 75.00

Packing material - - 5.00

Total 80.00

c) Profitability statements

(Rs. in lacs)






66

Raw & packing Materials 48.00 60.00

Utilities 1.08 1.35

Salaries 5.16 5.67





Total 66.36 82.17









d) Break Even Point Analysis


(A) Sales 76.27

(B) Variable Costs

Raw & packing Material 48.00

Utilities(70%) 0.76

Salaries (60%) 3.61





67




e) Debt Service Coverage Ratio (DSCR) (Rs. in lacs)




Total (A) 9.21 12.30 14.13



Total (B) 1.68 4.38 4.08

DSCR (A) / (B) 5.48 2.80 3.47

Average DSCR 3.91

f) Internal Rate of Return (IRR)



1 7.53 6.02 6.32

2 10.92 7.09 7.84

3 13.10 6.86 7.97

4 13.10 5.50 6.75

Total 25.47 25.47 28.88

The IRR is 18%

g) Manpower requirement


Skilled Workers 2 7,500 15,000

68

Helpers 4 5,000 20,000

Salesman 1 8,000 8,000

Total 43,000

8. ASSUMPTIONS



respectively.


12% per annum.


/ ton and Rs. 1,13,000/ ton respectively.


















69

PROJECT PROFILE

POTATO PROCESSING

1. INTRODUCTION

Potato is probably the most popular food item in the Indian diet. It is grown all over

the country with Uttar Pradesh growing the maximum quantity. Potato is a very rich

source of starch. It also contains phosphorus, calcium, iron and some vitamins. Apart

from the use of fresh potatoes for the purpose of making vegetables and gravy, they

are dehydrated in the forms of slices, sticks, cubes or powder to impart better shelf

life. Yet another popular use is to make wafers or chips.

2. OBJECTIVES









The all-important raw material is good quality potatoes. Potatoes have high water

content. Hence total process loss shall be almost 30%. The state of West Bengal produces

around 100.00 lacs tons of potatoes every year. Thus, procurement of the required

quantity shall not be a bottleneck. Other materials like salt, spices, preservatives etc. are

easily available.

70



Rapid urbanization and improving standards of living have seen manifold increase in

the demand of potato chips. Easy availability, convenient packaging, affordable prices

and nutritious values are some other reasons for their popularity even in far flung

rural areas. There exists consumer as well as bulk markets. Export of dried potato from




There are some international as well as national brands but majority of the market is

penetrated by local manufactures due to competitive pricing , easy availability at many

outlets and very efficient and timely supply as well as replacement. With proper

strategy and network, it is possible to penetrate the market.



Potatoes are grown and used in the Indian culinary since centuries with many end –

uses as explained above. However, this note deals with making of potato chips as this

product is very popular all over the country and can be manufactured even on a small

scale. Potatoes are grown in many parts of the country and thus this is not a location –

specific product.

b) Capacity

The proposed capacity of the plant is to process 58 MT / annum of potato.

71


Fully grown and ripe potatoes are thoroughly washed before peeling them. Then these

potatoes are trimmed and put in brine water for 30-35 minutes to prevent browning.

They are afterwards cut in the required sizes on slicing machine. These slices are

blanched in boiling water and are then placed on drying trays which are then put in

the drying machine. Temperature of dryer is maintained in the range of 140 to 150° F.

After drying, they are fried in edible oil to make them crisp and brown and then they

are packed in polythene bags . The chips could be salty or spicy. Some other flavours

which are locally popular can also be tried.


a) Land & Building

Land of 200 sq. mtrs. with built up area of 100 sq. mtrs. would be adequate. Equipments

would occupy around 60 sq. mtrs and rest of the area can be utilized for storage. The

land would cost Rs. 1,00,000/- whereas cost of building is estimated to be Rs. 6.00 lacs.


Keeping in mind the potential market and economic viability, it is suggested to

install production capacity of 40 tons of potato chips per year and 300 working days

each year. To achieve this capacity, following equipments are required :

(Rs. in lacs)

Item Qty Price

Slicer made of SS with attachments and electric motor 1 1.75

Electrically operated dryer with trolleys and 98 trays 1 5.00

Coal-fired furnace 1 2.00

Motorised potato peeling machine 1 0.50

Automatic sealing machine 1 0.75

Cutting and peeling knives, aluminium utensils 1 2.50

Total 12.50

72


A provision of Rs. 2.25 lacs would take care of furniture, storage facilities, tables,

exhaust fans etc.

d) Utilities

Power requirement shall be 10 HP whereas per day water requirement will be 2,000

ltrs. Coal requirement for furnace shall be about 1 ton every month. Total cost of

utilities is estimated to be Rs. 2.25 lacs /year.


Expenditure like registration and administrative charges, pre-production expenses, trial

run expenses etc. is estimated to be Rs. 1.50 lacs


At 60% capacity utilization in the first year, the total working capital needs will be Rs.

2.13 lacs consisting of bank finance of Rs.1.67 lacs and margin of Rs. 2.52 lacs. The

detailed calculations are as under:

(Rs. in lacs)


Stock of Raw

material & packing

Material

½ month 25% 0.38 0.29 0.09

Stock of Finished

Goods

½ month 25% 0.75 5.7 0.18


Total 2.13 1.61 0.52

73


(Rs. in lacs)

Item Amount




P & P Expenses 1.50



Total 25.62

Means of Finance



Total 25.62








The rated final product capacity of the plant is 40 tons per year and it is anticipated

that it shall be operated at 60 % and 75% during 1st year and 2nd year respectively.


For a new entrant, it becomes very difficult to capture the market. Hence, it is

assumed that the net selling price will be Rs. 100/ kg or Rs. 1,25,000 per ton. Thus, the

total sales realization will be Rs. 50.00 lacs.

74



Potatoes 58 15,000 8.70

Salt, spice, Preservatives, edible oil

etc

- - 3.00

Hard coke 12 5,000 0.60

Packing materials - - 3.20

Total 15.50


(Rs. in lacs)







Utilities 1.35 1.68

Salaries 3.25 3.57





Total 17.90 22.49





75







(A) Sales 37.50

(B) Variable Costs


Utilities(70%) 1.17

Salaries (60%) 2.49










Cash Accruals 10.38 13.54 16.24


Total (A) 12.23 15.20 17.49



Total (B) 1.85 4.66 4.25

76

DSCR (A) / (B) 6.61 3.26 4.11

Average DSCR 4.66



(Rs. in lacs)


1 10.38 7.78 7.57

2 13.54 7.71 7.31

3 16.24 6.98 6.33

4 16.24 5.19 4.70

5 16.24 4.06 3.41

31.72 29.24

The IRR is 36%





Helpers 1 5,000 5,000

Salesman 1 8000 8,000

Total 32,500

8. ASSUMPTIONS



respectively.


12% per annum.

77

Price of raw material and selling price of finish products is taken at Rs. 15,000 /

ton and Rs. 1,25,000 / ton respectively.

















Ph. 23712840 / 41




78

PROJECT PROFILE

PAPAYA CANDY

1. INTRODUCTION

Papaya candy is an item of mass consumption and is mainly used in after-mint or

mukhvas and chewing paan or masala. Other user segment is certain bakery

products and some sweet preparation. But bulk of the consumption is by paan/masala

selling shops round the year across the country. It is made from unripe or green

papaya fruits and contains substantial quantum of sugar. Since the customers are

scattered vary widely, it necessary to have proper marketing arrangements.

2. OBJECTIVES









The most critical material will be unripe but fully grown papaya and sugar . Since

quantity required of these items every month will not be much, no difficulty is

envisaged in their procurement. The process weight loss is around 30% which is to

some extent compensated by absorption of sugar syrup and the net loss is around 25%.

Other materials like food grade colours, flavours, citric acid etc. shall be available

79

locally. Polythene bags shall be required for packing. Production of papaya in West

Bengal is estimated to be 3.31 lacs ton /year.


Papaya candy is an item of mass consumption and used while making chewing paan or

masala and preparing mukhwas or after-mint. It is not consumed alone ( except by

children) but invariably mixed with other ingredients. Its sweet taste and flavour is

liked by many. Market is controlled by very small no. of manufacturers as it is sold

to hundreds of paan-shops and servicing them is very difficult . Reportedly, bulk of

the supply to West Bengal is from outside the state and there are good prospects for

a local manufacturer. Appointment of area-wise distributors or stockiest and regular

supplies are the key elements.



Cherry or tutty-fruity is consumed by many people along with chewing paan or

masala or mukhwas or after mint. It is also used in some bakery products and sweets. It

is made from unripe papaya fruits, it is sweet in taste and is of pinkish colour. This

product can be made in many states of the country but this profile considers West

Bengal as the contemplated location.

b) Capacity

The proposed capacity of the plant is to process 90 MT / annum of papaya.


It is standard and simple. Big unripe papaya are washed and peeled. They are cut

length-wise and seeds and fibres are removed. These pieces are blanched in boiling

water for about 10 minutes and are pricked with forks to ensure proper absorption of

sugar syrup. Sugar syrup is made and small quantity of citric acid and flavours are

80

added to it. Pieces of papaya are soaked in this syrup for about 10 minutes and

then taken out and kept for seasoning for around 8-10 hours and then cut into

smaller square pieces and wiped with wet cloth to remove any dirt and excessive

coating of sugar. Finally , they are dried in a dryer at around 60° C temperature for

10-12 minutes, cooled and packed in polythene bags. The weight loss on account of

removal of skin, seeds etc. from papaya is around 25%.


a) Land & Building

A large hall of around 100 sq.mtrs. could be enough. It can accommodate production

as well as storage and packing activities . Total investment in building is estimated to

be Rs. 6.00 lacs . Land of 200 s.qm will cost Rs. 1.00 lac.


For an annual installed capacity of 90 tonnes with 1 shift working and 300 working

days, the following machine shall be required.

Item Qty. Price (Rs.)

Papaya peeling machine with SS Body and all Accessories 1 1.50

Papaya slicing and cubing machine of SS with double rollers,

hopper and electric motor

1 2.00

LPG furnace (Bhatti) with burners, blower etc. 1 1.50

Electrically operated dryer with aluminium trays – 48 trays 1 5.00

Heat sealing machine and weighing scales - 2.00

Total 12.0


An amount of Rs. 1.50 lacs is provided towards furniture and fixtures, packing tables,

storage racks etc.

81

d) Utilities

Power requirement will be 10 HP and around 5000 ltrs. of water shall be required

every day for washing of papaya, sanitation and potable purposes. 5 LPG cylinders

shall be required every month. Total cost of utilities is estimated at Rs. 3.50 lacs.


A provision of 1,50,000/- is made towards pre-production expenses like registration,

establishment and administrative expenses, travelling, interest on loan during

implementation , trial run expenses etc.


Major raw material is papaya which will not be stored for more than 2-3 days. Process

time is hardly 12 hours and stock of finished goods will be kept for about a week.

Hence, it is assumed that bank would sanction working capital facilities of Rs. 2.31

lacs and the promoters would bring in Rs.0.98 lacs by way of margin.

(Rs. in lacs)


Stock of Raw

material & packing

material

¼ month 30% 0.40 0.28 0.12

Stock of Finished

Goods

½ month 30% 1.33 0.93 0.40


Total 3.29 2.31 0.98

g) Project cost & Means of Finance (Rs. in lacs)

Item Amount



82


P & P Expenses 1.50



Total 24.78

Means of Finance



Total 24.78








The rated production capacity of the plant is 90 tonnes per year whereas actual

capacity utilization is expected to be 60% in the first year and 75% thereafter.


Assuming selling price of Rs. 80,000/- per ton, the annual sales at 100% would be Rs.

72.00 lacs.


(Rs. in lacs)


Unripe Papaya 90 20,000/- 18.00

Sugar 30 30,000 9.00

83

Citric Acid, Food grade colour,

Flavours etc.

- - 1.60

Packing material - - 3.60

Total 32.20

d) Projected Profitability

(Rs. in lacs)






Raw and Packing Materials 19.32 24.15

Utilities 2.10 2.62

Salaries 4.02 4.42





Total 32.14 39.69









84

e) Break Even Point Analysis (Rs. in lacs)

S. No. Particulars Amount

(A) Sales 54.00

(B) Variable Costs

Raw and Packing Material 24.15

Utilities(70%) 1.83

Salaries (60%) 3.09










Cash Accruals 12.91 12.81 15.37


Total (A) 14.38 19.98 16.24



Total (B) 1.47 4.17 3.87

DSCR (A) / (B) 9.78 4.79 4.19

Average DSCR 6.25

85




1 12.91 9.16

2 12.81 6.53

3 15.37 5.53

4 15.37 3.99

Total 25.21

The IRR is 40%





Salesman 1 8,000 8,000

Total 33,500

8. ASSUMPTIONS


The operating capacity is 65% , 75% & 90 % during 1st year , 2nd year and 3rd

year respectively.


12% per annum.


/ ton and Rs. 80,000 respectively.

86

















Ph. 23712840 / 41




87

PROJECT PROFILE

WATERMELON JUICE

1. INTRODUCTION

Fruits are important source of energy for human-beings but they are perishable items.

Hence since many years various products are made from juice of fruits so that they

can be consumed during off season as well. Products like jam, jelly, squash etc. are

made from fruits since long. With the advent of technology and preservatives, shelf

life of such products has gone up and they can be preserved for many months with

proper packing . The proposed location of this activity could be many centres in

India as number of tropical fruits and fruit like watermelon are grown in the country.

However, this note deals with a project in West Bengal as several fruits like pineapples,

mango, orange, guava litchi, papaya, watermelon etc. are cultivated there in large

quantities. Hence, it is suggested to undertake a fruit processing activity.

2. OBJECTIVES









The all important raw material will be fresh, ripe and matured watermelon. The Eastern

states including WB are famous for horticulture products. Availability of a few

hundred tons of watermelon will not pose any problem. Other items like sugar, salt

88

additives and preservatives etc. shall be available locally. Packing materials like food

grade plastic or glass bottles, labels, corrugated boxes, BOPP tape etc. shall be required

for which prior arrangement is advisable.



Fruits are liked by people of all age groups but they are available only during a specific

season. Due to high water or juice contents, they are perishable. Certain fruits require

very careful and consequently costly transportation. Hence many down- the- line

products like squash, fruit-juice concentrates, jam, nectars etc. are made from fruits

with preservatives which increase their shelf-life substantially. Market for such

products has witnessed a quantum jump during last few years and with growing

urbanization, increase in disposable incomes and changing life styles, demand for them

is steadily going up.

b) Marketing Strategy.

Some established brands of fruit juice are available in the market but they are costly

and hence people would prefer low cost, good quality products . It is possible to

introduce competitive pricing for a small scale unit due to its inherent features. Proper

care has to be taken in creating and maintaining adequate network.



Fruits are perishable in nature and for their preservation, they need to be processed

to make juice, squashes, jams nectars etc. However, this note is restricted to the

processing of water melon juice.

89

b) Capacity

The proposed capacity of the plant is to process 300 MT / annum of watermelon.


The manufacturing process for making fruit juice is standardized and not very

complicated or time consuming. CFTRI, Mysore, has successfully developed this

technology. In the first process, fully ripe and matured fruits are washed, cleaned

graded and then peeled. Thereafter, juice is extracted from fruits and then it is filtered

to remove seeds, fibres etc. This juice is then processed, sterilized and bottled after

adding preservatives.


a) Land & Building



production, storage and packing facilities. Cost of land Rs. 75,000/- and that of of civil

work Rs. 18.00 lacs. FSSAI provisions about layout of factory building must be adhered

too.


In view of size of the market and to ensure economic viability of the project, rated

production capacity of 300 tonnes per year with single shift working and 300 working

days is advisable. To install this capacity following machines shall be required:

(Rs. in lacs)

Item Qty Price




Stirrer 1 0.25

90

Baby Boiler – 100 kgs/hr 1 3.50


Testing equipments like Refracto Meter Salinometer,

pipette, Burette etc.

1.25

Total 15.00


Many other assets like stainless steel utensils, plastic, tubs exhaust fan, storage racks,

furniture & fixtures, etc shall be needed. A provision of Rs. 3.00 lacs is made for the

same.

d) Utilities

Power requirement will be 30 HP whereas per day water requirement would be 30000

liters for washing of fruits and for potable and sanitation purposes. Hard coke of

around 25 tonnes will be required annually for boiler. The cost of utilities is estimated at

Rs. 2.0 lacs.


There are certain expenses which are incurred prior to the commencement of

production such as registration, establishment and other administrative expenses,

interest during implementation and so on. A provision of Rs. 2,00,000/- is made

towards them.


Against installed production capacity of 300 tonnes per year, actual capacity utilization

in the first year is expected to be 65% . At this level of activity, the working capital

needs will be as under :

91

(Rs. in lacs)


Stock of packing materials 1 month 30% 0.47 0.33 0.14

Stock of Finished Goods ½ month 25% 1.81 1.36 0.45


Stock of raw material ½ month 25% 0.55 0.42 0.13

Total 5.23 4.01 1.22









Total 43.28

Means of Finance



Total 43.28






92




capacity utilization is expected to be 60% and 75% during the 1st year & 2nd year

respectively.



Watermelon juice 150 63,300/- 95.00

Total 95.00



Watermelon 300 14700 44.00

Sugar - - 1.00

Additives, Preservatives, Flavours,

etc

- - 1.00

Packing Material@ Rs. 5000 /Ton - - 7.50

Total 53.50


(Rs. in lacs)







93


Utilities 1.20 1.50

Salaries 5.50 6.05





Total 43.60 53.69











(A) Sales 71.25

(B) Variable Costs

Raw &Packing Material 40.10

Utilities(70%) 0.97

Salaries (60%) 3.93





94



(E) Break Even Point 33 %


(Rs. in lacs)


Cash Accruals 10.43 17.16 20.59


Total (A) 13.02 19.25 22.18



Total (B) 2.59 7.09 6.59

DSCR (A) /(B) 5.02 2.71 3.36

Average DSCR 3.69



(Rs. in lacs)


1 10.43 8.34

2 17.16 11.15

3 20.59 10.78

4 20.59 8.70

5 20.59 7.02

Total 45.99


95





Helpers 4 5,000 20,000

Salesman 1 8,000 8,000

Total 55,000

8. ASSUMPTIONS



respectively.


12% per annum.

Price of watermelon is taken at Rs. 14,700 / ton and the selling price of juice at

Rs. 63,300/ton.














96






Ph. 23712840 / 41


97

PROJECT PROFILE

DESICCATED COCONUT POWDER

1. INTRODUCTION

India is one of the leading producers of coconuts in the world. About 55-60% of the total

production of the country is used for various food preparations whereas balance

quantity goes for oil extraction. Coconut oil is used as a cooking medium in certain

parts of the country and it is also a popular hair oil. Coastal areas of Kerala, Tamil

Nadu, Karnataka, Orissa, Andhra Pradesh, Goa, Maharashtra and West Bengal grow

large quantities of coconut trees and this project can be set up in any of these states. For

food preparations, fresh coconuts are used in small quantities but copra and desiccated

coconut are very popular with several applications round the year.

2. OBJECTIVES









The only raw material would be fully grown good quality coconuts. Adequate prior

arrangements should be made. Polythene bags, plywood boxes, labels and box

strapping shall be the packing materials. Total production of coconut in West Bengal is

estimated to be 326.30 million nuts / year.

98


Indians have been using coconuts in food and snack preparations since time

immemorial. Fresh coconuts have limited availability as well as shelf life once their

shells are removed. Hence, dried coconuts in the form of copra or coconut powder

have become mass consumption items due to their availability round the year across

the country. Longer shelf life, reduction in wastage and convenience in transporting

give freedom to the consumers to buy the required quantity. Desiccated coconut is

not used in large quantities in individual household but its main consumers are

confectionary and biscuit industry. It is also used in the preparation of sweets, curry,

many varieties of chutney, farsan and chikkies and many other food and snack

preparations. Thus, restaurants, dhabas, canteens, sweet, farsan and chikki

manufacturers, certain food processing units and caterers are bulk and regular

consumers of the coconut products.



Desiccated coconut, also known as coconut powder, is in dry form and has many

applications. Its shelf life is longer and it is easy to transport. Availability of fresh

coconuts is limited to coastal areas only and hence desiccated coconut is popular in all

other regions.

b) Capacity

The proposed capacity of the plant is to process 16.00 lacs coconut/ annum .


It is simple and well established fully grown and matured coconuts of around 1 year

are stored with husk for about a month to facilitate absorption of water and

separation of coconut kernels from shell walls. After de-husking, their shells are

99

removed and brown portion (also known as tasta) is removed by scrapping it off

and in this process around 12 -15% of the kernel goes as paring which is further

processed to obtain oil, and thus there is a ready market for this byproduct.

Subsequently, de-shelled coconuts are broken into pieces, washed and disintegrated in

powder form. This powder is then dried in tray drier at about 70-80° C and powder is

stirred occasionally to ensure uniform drying . On cooling, it is passed through

vibratory screen with different mesh sizes to segregate the powder according to mesh

size. Finally, it is packed in moisture and oil-proof polythene-lined plywood boxes of

10,25 or 50 kgs. Retail sales is not much but for that packing of 200 or 400 gams is

advisable. Recovery of desiccated coconut largely depends upon quality of coconuts.

But on an average, processing of 100 coconuts gives around 12-13 kgs. of coconut

powder. Byproducts like parings and shell can be sold in the market.


a) Land & Building

Land measuring about 300 sq. mtrs. with built-up area of 100 sq. mtrs. will be

adequate. Storage of coconuts with husk can be undertaken adjacent to the main

building under asbestos roofing. Land may cost Rs. 1.50 lacs whereas cost of main

factory building along with drying area is assumed to be Rs. 6.00 lacs


For annual rated capacity the following machines shall be required :

Item Qty Price (Rs. in lacs)

Hot air drier with blower and other accessories 1 5.00

Disintegrator with accessories and electric motor 1 2.60

Vibratory screen with wire mesh and electric motor 1 1.40

Aluminum trays 15 0.60

Weighing Scales, Bag-sealing machine, aluminum - 2.20

100

vessels, scrapping knives, plastic tubs, laboratory

instruments etc.

Total 11.80


Other assets like furniture & fixtures, working tables, electrical etc. would need Rs. 1.70

d) Utilities

Total power requirement shall be 25 HP and per day water requirement would be 5000

ltrs. The cost of utilities is estimated at Rs. 1.80 lacs.


An amount of Rs. 2.00 lacs is provided towards pre-production expenses like

establishment, registration and administrative expenses, travelling, trial runs, interest

during implementation etc.


At 60% activity level in the first year, the working capital needs would be as under :

(Rs. in lacs)


Stock of Raw

material & Packing

material

½ month 30% 4.50 3.15 1.35

Stock of Finished

Goods

½ month 25% 5.86 4.40 1.46


Total 16.59 12.21 4.38

101

g) Project cost &Means of finance


Land and building 7.50

Plant and machinery 11.80

Miscellaneous assets 1.70

P & P Expenses 2.00



Total 29.16

Means of Finance

Promoter’s contribution 11.66


Total 29.16








As against the rated annual capacity of 16 lacs coconut / year, actual utilization in first

year is taken at 60% and thereafter at 75%.



Desiccated Coconut 200 1,20,000 240.00

Coconut Parings 30 50,000 15.00

Coconut Shell 60 7,000 4.20

Total 259.20

102

c) Raw material & packing Material Required at 100%

The raw material needs are as under :

(Rs. in lacs)


Coconut with husk 16.00 lacs 10.00 160.00

Packing material @ 10,000 Ton -- -- 20.00

Total 180.00







Raw material and Packing materials 108.00 135.00

Utilities 1.08 1.35






Total 140.77 174.87







103





(A) Sales 155.50

(B) Variable Costs


Utilities(70%) 0.75

Salaries (60%) 8.77










Cash Accruals 11.52 16.31 19.57


Total (A) 13.27 17.71 20.92



Total (B) 1.75 4.90 4.55

DSCR (A) / (B) 7.58 3.61 4.59

Average DSCR 5.26

104




1 11.52 8.64

2 16.31 9.29

3 19.57 8.41

4 19.57 6.26

5 Total 32.60

The IRR is 33%





Helpers 10 5,000 50,000

Clerk 1 7,500 7,500

Salesman 1 8,000 8,000

Total 1,04,500

8. ASSUMPTIONS



respectively.


12% per annum.

Price of raw material and selling price of finished products is taken at Rs. 10/pcs

and Rs. 1,20,000/ ton respectively.

105

















Ph. 23712840 / 41




106

PROJECT PROFILE

BANANA POWDER

1. INTRODUCTION

Banana is one of the most important fruits in India and occupies about 8.14 lacs

hectares area with an annual production of about 302.82 lacs MT / year . The main

banana growing states are Tamil Nadu, Maharashtra, Kerala and Andhra Pradesh and

West Bengal. Banana contains about 20% sugar and reasonable amount of vitamins A,

B, and C. This is considered to be a rich source of energy. It is consumed in several

varieties of preparation and forms. When it is raw, it is used as a vegetable. It is easily

digestible, when it is ripe, the pulp gets soft, sweet and has a pleasant aroma.

2. OBJECTIVES









The most critical material will be ripe but fully grown Banana . Since quantity required

of these items every month will not be much, no difficulty is envisaged in their

procurement. Other materials like food grade colours, flavours, citric acid etc. shall be

available locally. Polythene bags shall be required for packing. Production of Banana in

West Bengal is estimated to be 10.77 lacs ton /year.

107

1. Raw material such as sugar - 6.00

2. Liquid glucose - 2.50

3. Citric Acid - 2.10

4. Essences colour flavour & preservatives - 1.00

5. Carbon dioxide - 0.60

6. Activated carbon hyprocell - 0.15

Total 12.35


Major share of the banana production in the country is consumed in fresh form. Besides,

a small percentage of it is exported especially to Russia. Being highly perishable in

nature there is a need to preserve this important fruit by processing into products

such as banana figs, banana pulp, weaning foods for infants, clarified banana juice ,

powder etc. to cater to the needs of different section of the society and thereby

providing incentives to the growers. The technology to manufacture these products

commercially has been developed by the Central Foods Technological Research

institute , Mysore, Dehydrated ripe bananas popularly known as banana figs

manufactured in the small and cottage scale sector are sold as snack foods at tea stalls

restaurants, railway stations and tourist places in different parts of the country.



Banana is one of the most important fruits in India. The main banana growing states

are Tamil Nadu, Maharashtra, Kerala and Andhra Pradesh and West Bengal. Banana

contains about 20% sugar and reasonable amount of vitamins A, B, and C. This is

considered to be a food having rich source of energy. It is consumed in several varieties

of preparation and forms. When it is raw, it is used as vegetable or cooking purposes. It

is easily digestible, when it is ripe, the pulp gets soft, sweet and has a pleasant aroma.

The various commercial products which can be made out of banana are pulp, juice,

108

powder and figs. of Banana can be used for the manufacture of cushioning material

processing into fabrics and preparation of starch.

b) Capacity

The proposed capacity of the plant is to process 150 MT / annum of banana.


Suitable varieties of banana used for the manufacture of figs are Nendran, Cavendiah

& Pachabale . Firm, ripe and good quality bananas are cleaned in fresh water, steamed

if necessary peeled and are cut longitudinally into halves with stainless steel knives.

The cut fruits are dipped in 1 per cent sodium bicarbonate solution for 15 minutes and

are then rinsed in 0.05 per cent citric acid solution. The prepared fruit are spread on flat

bottomed wooden trays and are placed in sulphuring champer.

They are kept in the chamber for one hour , sulphur is burnt at the rate of 3.6 kg. per

tonne of fruit in 28.3 cubic meter sulphur chamber space. It help in improving colour

and taste of the product, beside, it also checks mould growth and prevent destruction of

vitamins. The sulphured fruits should be pliable, soft and sticky, with moisture content

of less than 5 per cent. The dried bananas are packed in insect proof hermetically sealed

containers waxed or wax lined cartons or laminated bags.

Banana Powder

The dried banana chips of uneven sizes containing less than 5 percent moisture can

be converted into banana powder by pulverizing. The banana powder can be used in

weaning foods for infants or in manufacturing bakery and confectionery products.

109


a) Land & Building

Building with covered area of 250 sq. mtr processing and 250 sq.mtr for ripening

chamber) having the provision of processing hall, store, Office laboratory, air tight

chamber of mansonary Construction for ripening bananas. The cost of the building is

estimated at Rs. 22.50 lacs

b) Plant & Machinery (Rs. in lacs)

1. Cross flow tunnel drier Rs. 11..25

2. Spare wooden trolleys Rs. 0.80

3. Extra wooden slat bottom drying trays Rs. 0.30

4. Wooden preparation tables Rs. 0.60

5. Sulphur house Rs. 0.75

6. Heat sealing machinery Rs. 0.10

7. Boiler Rs. 3.50

8. Pulverizer Rs. 1.80

9. Platform type weighing balance Rs. 0.20

10. Aluminium vessels, Rs. 0.18

11. Retort with hoist arrangement Rs. 0.24

12. Laboratory equipments Rs. 0.80

13. Miscellaneous equipment Rs . 0.50

14. Electrification & installation charges Rs. 1.40

15. Cost of office equipments Rs. 0.53

Total Rs. 23.00

c) Utilities

Power requirement will be 10 HP and around 5000 ltrs. of water shall be required

every day for washing, potable and sanitation purposes. 5 LPG cylinders shall be

required every month. Total cost of utilities is estimated at Rs. 3.00 lacs.

110

d) Prel. & Pre Operative Expenses

A provision of Rs. 2.45 lacs is made towards pre-production expenses like registration,

establishment and administrative expenses, travelling, interest on loan during

implementation trial run expenses etc.

e) Working Capital Assessment

(Rs. in lacs)


Stock of packing

Material

1 month 30% 1.13 0.79 0.34

Stock of Finished

Goods

½ month 25% 2.02 1.51 0.51


Total 6.15 4.55 1.60

f) Project cost & Means of finance





P & P Expenses 2.45



Total 57.60

Means of Finance



111

Total 57.60








The rated production capacity of the plant is 150 tons / year whereas actual capacity

utilization is expected to be 60% and 75% during 1st year and 2nd year respectively.


Product Qty (Tons) Selling Price (Rs. /

ton)

Total sales (Rs. in

lacs)

Banana Powder 20.00 1,50,000 30.00

Banana Figo 100.00 90,000 90.00

Total 120.00


Product Qty (Tons) Rate (Rs. / Ton) Value (Rs. in lacs)

Banana 150 20,000 30.00

Chemicals 3.00

Packing material 12.00

Total 45.00

112


(Rs. in lacs)


A. Installed capacity 150 Ton /year





Utilities 1.80 2.25

Salaries 7.20 7.92


Repair and Maintenance 1.80 2.25



Total 48.60 59.46






Income-tax @ 20% 2.97 4.60




113



(A) Sales 72.00

(B) Variable Costs


Utilities(70%) 1.26

Salaries (60%) 4.32




Interest on WC (Repair & maint.) 0.55 41.02






Cash Accruals 16.46 22.50 27.00


Total (A) 19.92 25.26 29.06



Total (B) 3.46 9.76 9.06

DSCR (A) / (B) 5.75 2.58 3.20

Average DSCR 3.84

114



(Rs. in lacs)


1 16.46 13.16

2 22.50 14.62

3 27.00 14.14

4 27.00 11.42

5 27.00 8.14

Total 61.48

Internal Rate of Return IRR 25%


Particulars Nos. Monthly Total Monthly Salary (Rs.

in lacs)

Skilled workers 2 7,500 1.80

Semi Skilled Workers 2 6,000 1.44

Production Manager 1 10,000 1.20

Salesman 1 8,000 0.96

Others 2 15,000 1.80

Total 7.20 lacs

8. ASSUMPTIONS



respectively.


12% per annum.

115


/ ton and Rs.1,50,000 / ton respectively.

















Ph. 23712840 / 41




116

PROJECT PROFILE

FRUIT WINE

1. INTRODUCTION

Fruit wine making is gradually picking up in India. Realizing the potential of this

industry, some state Industrial Development Corporation has established wine parks

under the Food Park scheme of the Ministry of Food Processing Industry of the Govt. of

India. Apart from providing basic infrastructure facilities, these parks would have other

innovative features like wine festival ground, exhibition centre, wine therapy centre etc.

The Govt. has also declared a special incentive package for the grape processing

industry. Thus a number of promotional schemes are available. There are around 20

grape wine producing units in the state of Maharashtra alone and many are likely to

come up. Market for grape wine is continuously growing in India and abroad. This is a

good product especially for some progressive farmers who are already in grape

farming.

2. OBJECTIVES








117


The basic raw material required for the unit is fresh and matured grapes. Production of

grapes in West Bengal is negligible. However, farmers can take up cultivation of

grapes in some part of the state .



India is a large market for wine. As against per capita consumption of European

Countries of 55-60 ltrs every year, the per capita consumption in India is few spoons.

It has been proved that Indian grapes (wine quality) are very good and some wineries

are already catering to the quality-conscious USA and European market.

Depending upon the quality and maturity (age) prices of wine range from Rs. 600/- to

few thousand rupees for a bottle of 750 ml. Due to higher import duty, imported wines

are very costly. Consumption of wine is reportedly increasing @ 25% to 30% in the

country. Good quality and fancy bottles and corks are also available within the country.

Thus, apart from various incentives from the state & central governments, other

conditions are also very positive. Hence financial viability would not be problem. Many

of the existing wineries in the region have proved this aspect. Export of wine from



b) Marketing Strategy :

Apart from world market, India is a very good market. Wine consumption in the

country is still at nascent stage. Wine is now accepted as a health or social drink and its

consumption is increasing gradually. Quality wines were mainly imported till couple of

years back and hence they were very expensive . Availability of good quality Indian

wine at half the price has resulted in continuous increase in demand. Gradual

118

awareness about basic difference between wines and hard drinks is also helping the

wine industry. Thus, India provides a large virgin market for wine.


a) Product & its uses

There are various types of wines available in the world like white wine, red wine

dessert wine etc. Red wine is popular in India. It is increasingly being promoted as

health drink as against other hard liquors like whisky or rum.

b) Capacity

The proposed capacity of the plant is to process 360 MT / annum of grapes .


Wine making is a specialized line in India till now unlike in countries like France, Italy,

Australia or Argentina where even the farmers have their small wineries. Hence, it is

advisable to consult a wine maker. The process is as under :

Selection of grapes, de-stoning and pressing

In case of white wine, fermentation without skin whereas for red wine, the

fermentation is undertaken with skin and then skin is removed.

Further process involves cold treatment and filtration.

Finally, bottling corking, foiling and labeling is undertaken.

Fermentation is the most critical stage which decides the ultimate quality.


a) Land & Building

Land 1000 sq. meter @ Rs. 500 sq. m - Rs. 5.0 lacs

Covered area 500 sq. meter @ Rs. 6000 sq. m. - Rs. 30.00 lacs

119


(Rs. in lacs)

1. Cost of fermentation unit - Rs. 25.00

2. Automatic bottle filling machine - Rs. 10.20

3. Bottle washing machine a - Rs. 11.70

4. Bottle collecting & revolving table - Rs. 3.60

5. Water treatment plant - Rs. 2.10

6. Steam boiler - Rs. 8.40

7. Refrigeration unit - Rs. 5.50

8. Chain & chain conveyor - Rs. 3.70

9. Hand operated bottle filling machine - Rs. 1.70

10. Leg operated crown corking machine - Rs. 0.80

11. Light screener & other accessories - Rs. 0.75

12. Volume tester-cum – purifier & other - Rs. 0.65

Total - Rs. 74.10


Some other assets like furniture and fixtures, working tables, storage racks and bins, D.

G. set, electrical etc. would cost about Rs. 29.00 lacs.

d) Utilities

Power requirement shall be 30 HP whereas per day water requirement for processing

and potable and sanitation purpose will be 50,000 litres. Annual cost of utilities at 100%

utilization will be Rs. 8.40 lacs.


There will be many pre-production expenses like registration, establishment &

administrative, travelling expenses, interest during implementation, trial run expenses,

etc for which a provision of Rs. 2.75 lacs is made.

120


(Rs. in lacs)


Stock of raw

material & packing

material

¼ month 30% 2.88 2.02 0.86

Stock of Finished

Goods

½ month 25% 8.15 6.12 2.03


Total 21.03 15.64 5.39






P & P Expenses 2.75



Total 156.64

Means of Finance



Total 156.64



121



and plant & machinery for eligible projects subject to certain terms and conditions.



The rated production capacity of the plant is process 360 tonnes per year of grapes

whereas actual capacity utilization is expected to be 60% and 75% during 1st year & 2nd

year of operation respectively.


Product Qty ( crates / year) Selling Price (Rs. /

crate)

Sales (Rs. in lacs)

Grape wine 20,000 2050/- 410.00


Various raw material required for the unit are given below;

Product Qty (Tones) Rate (Rs. / Ton) Value (Rs. in lacs)

Fresh grapes 360 50,000 180.00

Chemical / yeast 18.00

Packing material

Bottles 24.00

Label / carton 9.00

Total 231.00

122


(Rs. in lacs)






Raw Materials & Packing Materials 138.60 173.25

Utilities 5.04 6.30






Total 195.72 241.51






Income-tax @ 20% 2.86 4.64




123


S. no. Particulars Amount (Rs. in lacs)

(A) Sales 246.00

(B) Variable Costs

Raw Material & Packing material 138.60

Utilities(70%) 3.52

Salaries (60%) 12.52










Cash Accruals 36.16 51.12 61.34


Total (A) 45.55 59.01 67.63



Total (B) 9.39 22.89 21.39

DSCR (A) / (B) 4.85 2.57 3.16

Average DSCR 3.52

124




1 36.16 28.92

2 51.12 33.22

3 61.34 32.14

4 61.34 25.94

5 61.34 20.91

6 61.34 16.86

Total 157.99

The IRR in 15%



Manger 1 10,000 10,000

Sales Manager 1 8,000 8,000

Purchase Officer 1 8,000 8,000

Accountant cum cashier 1 8,000 8,000

Clerk 2 5,000 10,000

Steno-cum- Typist 2 5,000 10,000

Salesman-cum- Driver 1 5,000 5,000

Chief Chemist 1 10,000 10,000

Production Chemist 2 6,000 12,000

Maintenance Engineer 1 8,000 8,000

Laboratory Chemist 1 8,000 8,000

Mechanic 2 8,000 16,000

125


Unskilled workers 5 6,000 30,000

Total 1.74 lacs

8. ASSUMPTIONS



respectively.


12% per annum.


/ ton and Rs. 2,050/ crate respectively.


















126

PROJECT PROFILE

PINEAPPLE PROCESSING

1. INTRODUCTION

Fruits are an important source of energy. However, their availability is seasonal and

they are perishable. Hence, they need to be processed and preserved which also results

in value addition. India is endowed with many varieties of fruits. Amongst these fruits,

pineapple and orange are very popular and number of processed products like juices,

squashes, jam, marmalades etc. can be made from them.

2. OBJECTIVES









The all important raw materials shall be fresh pineapples. It is estimated that around -

10.50 lacs hectares are covered under pineapple cultivation in West Bengal. Total

production is estimated to be 3.21 lacs MT / year. Pineapples are available from August

to October and December to February. Even at 100% capacity utilization the project

would require 250 MT of pineapples . Hence availability will not be a bottleneck. Other

items like additives, preservatives, sugar etc. shall also be required in small quantities.

127

Packing materials like food grade plastic bottles or glass bottles shall also be required in

large quantities for which proper supply arrangements shall have to be made.


Fruit are popular amongst all age groups. But fresh fruit are available only during

specific season and that too-for 2-3 months every year . Hence downstream product

made from fresh fruits have become popular especially in urban and semi- urban

areas. But of late, demand from rural areas is also going up. Apart from households,

they are sold at many places like restaurants, clubs, railway stations and bus-stops,

cold drink houses, picnic or tourist spots and many such places. With growing

disposable income and changing lifestyle, such products have witnessed an increase in

demand. Export of pineapple juice during the year 2010-11,2011-12 & 2012-13 is

estimated to be Rs. 22.16 lacs, Rs. 2.05 lacs and Rs. 25.76 lacs respectively. Whereas

Export of pineapple squash during the year 2010-11,2011-12 & 2012-13 is estimated to be

Rs. 31.21 lacs, Rs. 59.87 lacs and Rs. 33.61 lacs respectively



Pineapples are grown in large quantities in many parts of the country including the

North- East region and West Bengal. Fruits are perishable in nature and for their

preservation, they need to be processed to make juice, squashes, jam etc. This product

note is confined to making pineapple juice and squash . The preferred location is any

part of West Bengal.

b) Capacity

The proposed capacity of the plant is to process 250 MT / annum of pineapple .


The important steps involved in making fruit juice and squash are

Washing , cleaning grading and peeling of fruits.

128

Juice extraction and filtration for removal of seed and fibres

Juice processing, sterilization and mixing of preservatives

In case of squashes, juice is mixed with syrup of sugar, citric acid and water

and this mixture is stirred till uniform solution is formed.


a) Land & Building

Built up area of about 300 sq. mtrs. shall be adequate. A building of this size could cost

around Rs. 18.00 lacs. About 150 sq. mtrs would constitute production area whereas

balance space can be utilized for packing and storage. In addition to this land area of

500 sq.m will cost Rs. 2.50,000/-


To ensure financial viability of the project, it is desirable to install production capacity

of 100 tonnes of juice and also 100 MT of squash per year, considering around 250

working days due to non-availability of fruits during about 3 months. To have this

production capacity, the following equipments are required :

(Rs. in lacs)

Item Qty Price


Juice extractors 2 5.00

Steam jacketed kettles 2 1.50

Stirrer 1 0.25

Bottle washing machine filling machines 1 3.50

Baby boiler (100 kgs. capacity) 1 3.00

Testing equipment - 1.25

Mixing tank 1 1.00

Total 16.00

129


The project would require other assets like exhaust fans, stainless steel vessels for

storage, furniture, storage racks etc. for which a provision of Rs. 3.00 lacs is necessary.

d) Utilities

Total power requirement shall be 40 HP whereas water requirement per day shall be

5000 ltrs. Annual expenditure under this heads at 100 % capacity utilization would be

around Rs. 2.50 lacs/-


Expenses like registration and establishment, trial run expenses, interest during

implementation period etc. are expected to be Rs. 2.50 lacs.


At 60 % activity level in the first year, bank finance for working capital shall be Rs.

4.76 lacs whereas margin to be brought in by the promoters is Rs. 1.67 lacs totaling to

Rs. 6.43 lacs . The exact calculations are as under :

(Rs. in lacs)


Stock of Raw

Material / Packing

material

½ month 30% 1.37 0.96 0.41

Stock of Finished

Goods

½ month 25% 2.44 1.83 0.61


Total 6.43 4.76 1.67

130

g) Project cost &Means of finance





P & P Expenses 2.50



Total 47.07

Means of Finance



Total 47.07









utilization is expected to be 60% and 75 during 1st year and 2nd year respectively.



Ton)

Sales (Rs. in lacs)

Pineapple Juice 100 60,000 60.00

Pineapple Squash 100 55,000 55.00

Total 115.00

131


Detail of various raw material required are given below ;

(Rs. in lacs)

Product Qty (Tons) Rate (Rs. / Ton) Value

Pineapple 250 12,000 30.00

Sugar 45 30,000 13.50

Additives preservatives, flavours

etc.

- 1.50

Packing Material - 10.0

Total 55.00


(Rs. in lacs)






Raw & packing Materials 33.00 41.25

Utilities 1.80 2.25

Salaries 6.1 6.71





Total 51.40 63.32


132










(A) Sales 86.25

(B) Variable Costs


Utilities(70%) 1.57

Salaries (60%) 4.69










Cash Accruals 14.21 19.90 23.87


Total (A) 17.03 22.22 25.69

133



Total (B) 2.82 7.32 6.82

DSCR (A) / (B) 6.10 3.03 3.76

Average DSCR 4.29



(Rs. in lacs)


1 14.21 11.45 11.09

2 19.90 12.93 12.13

3 23.87 12.50 11.38

4 23.87 10.09 8.90

5 23.87 8.13 6.94

5 55.10 50.44

The IRR is around 28%





Helpers 4 5,000 20,000

Salesman 1 8,000 8,000

Total 61,000/-

134

8. ASSUMPTIONS



respectively.


12% per annum.


/ ton and Rs. 55,000 / ton respectively.


















135

PROJECT PROFILE

OSMODRIED FRUITS

1. INTRODUCTION

Fruits & Vegetables are available during specific seasons and they are perishable.

Hence, majority of them are not available during off season. To overcome this problem,

dehydration technique has been developed by which fruits in dehydrated form are

preserved for a longer period and are made available during off-season. With this

technology, certain high value and popular fruits & vegetables can be profitably sold in

the market.

2. OBJECTIVES


MSME sector in and guiding making them aware of the opportunities of this sector. It is

also being developed by the Directorate of the Food Processing Industries, Government

of West Bengal to help entrepreneurs with knowledge about raw materials availability,

knowledge of market, source of technology and plant and machinery suppliers. M/s

ITV Agro & Food Technologies Pvt. Ltd., New Delhi has helped in developing the

project profile.


The all-important raw material will obviously be fresh fruits . Hence, the location of the

project has to be nearer to fruits growing areas. Depending upon the availability of

fruits during different seasons, the product mix may change. Likewise the prices of

raw material would also change depending upon the exact product mix and crop

pattern. Prices of fruits vary and the product mix may also change according to

quantum of crop and consumer preference . Hence, it is not feasible to arrive at variety-

wise fruit & vegetable required every month and their individual prices. Therefore,

average price of each fruits is taken at Rs. 20000/- per ton. The packing materials will be

136

plastic bags made from suitable grade plastic, corrugated boxes, box strapping, labels

etc. Total production of fruits in the country is estimated to be 805.57 lacs ton /year

whereas total production of fruits in West Bengal is estimated to be 31.36 lacs ton /year.



Food habits of Indians are such that most of the house hold require fruits every day.

Due to climatic condition and types of soil, many fruits & vegetable are cultivated

throughout the year. The major limitation of bulk of the fruits is that they are grown

only during pre-determined season which lasts for 3-4 months and thus their

availability during rest of the months is a major problem. Hence, if they are made

available during this period then they command a premium. Green house method

enables cultivation of any fruits during any season but call for huge investment which

affects the economic viability. Dehydration technique is therefore, preferred. Total

export of dehydrated fruits & vegetable from India during the year 2010-11,2011-12 &

2012-13 is estimated to be Rs. 51563.40 lacs, Rs. 702320.99 lacs and Rs. 86390.06 lacs

respectively.


With growing income, changing lifestyles and hectic daily schedule, market for

dehydrated fruits is growing especially in urban areas. Proper placement of products

in the departmental stores, super markets, shopping mall etc. backed up by publicity

is the key to success . It is also possible to have tie-up with exclusive restaurants, star

hotels renowned caterers etc. for regular supplies.



Dehydration technology is well established and proven. Certain products like banana,

mango etc. command good price during lean and off-season. Banana and mango

137

powder also has good demand round the year but these products are generally

available throughout the year and powder is somehow not favoured by many. This

project can be set up in many different part of the country but this note considers West

Bengal as the preferred location.

b) Capacity



This note primarily considers dehydration of fruits. Fruits are chopped to make small

pieces and washed. Then they are blanched and dried in air. These dehydrated fruits

are then packed and stored carefully. Packing is very critical as any fungal growth

would damage the product. Process and weight loss varies from fruit to fruit, but on

an average it is 25 % as the fruits are dehydrated. In other words, the input-output

ration is 4:1.


a) Land & Building

The plot of about 500 sq. mtrs is required. The built up area requirement will be 220 sq.

mtrs. Storage of fruits would require area of 35 sq. mtrs, whereas packing room and

finished good godown will occupy about 60 sq. mtrs. fruits washing tanks could be

constructed adjacent to the raw material godown with asbestos sheets. Main

production hall will be of around 100 sq. mtrs. and balance 25 sq. mtrs could be

allotted for office and laboratory. The entire area has to be neat and clean and

completely hygienic. Considering price of land @ Rs. 500/- per sq. mtr. the total cost

of land would be Rs. 2.50 lacs whereas that of civil work it will be Rs. 13.20 lacs.

Construction cost is taken on a higher side as flooring, painting etc. of the building has

to be of superior quality to maintain hygienic standards.

138


Easy and regular availability of fresh fruits during each season and nearby urban

markets are the critical aspects for arriving at the installed production capacity for the

purpose of this note and with a view to minimizing initial capital investment. The

rated capacity is taken at 600 tons and 300 working days. The following machine shall

be required. (Rs. in lacs)

Item Qty Price

Washing tanks with sets of cubers , slicers, etc, 2 1.00

Blanching tank with thermostat control 1 2.50

Stacking trays for fruits 1 0.50

Pre-cooling facility for fruits 1 2.50

Vibratory shakers 1 1.20

Fluidized bed dryer to dehydrate fruits complete with all

attachments

1 7.00

Hot water boiler with attachments 1 2.50

Automatic form, fill and seal machines complete with

attachments

1 3.75

Pin mill with accessories of 50 kgs /hr. capacity 1 4.25

Testing equipments 1 set 1.25

Electrification 2.00

Total 28.45


Other assets like storage racks and bins, aluminum top working tables, exhaust fans,

furniture and fixtures, electrical, plastic trays/ jars / tubs, office equipment etc. shall be

required for which a provision of Rs.3.25 lacs is made.

139

d) Utilities

Power requirement shall be 30 HP whereas water required for washing of fruits and

for potable and sanitary purposes will be 20000 litrs /day. Total cost of utilities is

estimated to be Rs. 3.75 lacs.


There will be many expenses under this category like registration charges, market

survey expenses, scrutiny fee of the financial institution, pre production administrative

overheads including salaries, travelling, interest during construction and

implementation period, trial run expenses and so on. Hence, a provision of Rs. 3.50 lacs

is made.


As against rated capacity of 600 tonnes per year, capacity utilization of 60% is assumed

in the first year. At this activity level, the project would require working capital of Rs.

7.09 lacs as worked out here below:

(Rs. in lacs)


Stock of Raw

Material & packing

materials

½ month 25% 3.25 2.44 0.81

Stock of Finished

Goods

½ month 25% 4.19 3.15 1.04


Total 12.19 9.16 3.03

140






P & P Expenses 3.50



Total 58.09

Means of Finance



Total 58.09




Processing Industries, Govt. of India, towards the expenditure on technical civil works





capacity utilization is expected to be 60% and 75% during 1st year and 2nd year

respectively.

141


As explained above, there will not be exact sales mix every month. It will vary

according to the availability of vegetables and their prices and consumer demand or

preferences . A firm tie-up with a large buyer may also change the sales mix. Hence,

average price realization is taken at Rs. 1.26 lacs per ton or Rs. 189.00 lacs per year.


The total requirement of raw material is estimated at 600 MT/ annum.

Product Qty (Tones) Rate (Rs. /

Ton)

Value (Rs. in

lacs)

Vegetable 600 20 120.00


Total 124.80


(Rs. in lacs)




Sales Realisation 114 142



Utilities 2.25 2.81






142

Total 100.56 120.05








Repayment of Term Loan Nil 7



(A) Sales 142.00

(B) Variable Costs

Raw Material 93.00

Utilities(70%) 1.96

Salaries (60%) 6.13








143


(Rs. in lacs)




Total (A) 12.35 20.58 23.43



Total (B) 3.48 9.78 9.08

DSCR (A) / (B) 3.54 2.10 2.58

Average DSCR 2.74



Year Cash Accruals 24% 16% 18%

1 8.87 7.09 7.64 7.51

2 17.80 11.57 13.22 12.78

3 21.35 11.18 13.68 13.00

4 21.35 9.03 11.78 11.01

5 21.35 7.28 10.16 9.32

6 21.35 46.35 8.75 7.89

Total 65.23 61.51



Particulars Nos. Monthly salary Total Monthly Salary (Rs.)

Machine operator 2 8500 17,000

Skilled Worker 2 8500 17,000

144

Semi Skilled Workers 4 6000 24,000

Helpers 3 5000 15000

Laboratory Technician 1 8000 7000

Salesman 1 8000 8000

Clerk 1 7000 7000

Total 93,000

8. ASSUMPTIONS


The operating capacity is 60%, 75%, 90 % during 1st year, 2nd year and 3rd year

respectively.


12% per annum.


/ ton and Rs. 1.26 lacs/ ton respectively.














145






Ph. 23712840 / 41


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